International Investment

[NYDEUS]

I'm thinking of investing in an apartment house in Germany, that after deductions would show a profit from rental income. The German government requires that I would have to pay taxes on that so called "profit" in Germany. How do I declare this income in the US, and am I protected from paying taxes double?

thanks!

 

[loku]

As a US citizen (I assume), or a full time US resident, you have to declare all your income worldwide on your US income tax return. However, you are entitled to a credit for foreign income tax paid. So the result is that you only pay income tax on the German income once.

The purpose of the foreign tax credit is precisely to prevent you having to pay tax twice on the same income.