German dilemma

[veritas]

I have a client who is supposed to be getting some money from the sale of real estate in Germany. They have some documents in German and so they have no idea what to do. My understaning is my client had no ownership in the property but the relative wants to share in the proceeds.

Any ideas?

[DTS]

Veritas

Could this just be a family inheritance??

Dennis

[solomon]

I have a client who is supposed to be getting some money from the sale of real estate in Germany. They have some documents in German and so they have no idea what to do. My understaning is my client had no ownership in the property but the relative wants to share in the proceeds.

Any ideas?

Sounds like a gift. Check the instructions to Form 3520 Part IV if it meets that requirement for filing the form.

[JohnH]

You could pay to have the document translated in order to get a better idea of what is involved in the transaction. Until you know what it says you don't have much to go on.

[erchess]

It seems to me

that if your client gives you documents stating that they have to do with a matter about which the client wants your advice, you have to either turn down the assignment or read the documents. If you proceed without reading the documents, any problems that even arguably might have been avoided by your reading the documents could result in a malpractice judgment against you. Since these need translating get them examined by a college professor of German or your closest German Embassy or Consulate. If they turn out to be legal documents, get a signed translation from someone who professionally does LEGAL translations from German into English. The skill set you need is markedly rarer than the skill set necessary to translate a newspaper or a piece of literature. Obviously you will have to get your client to approve of these expenses in advance and then you will simply pass them on. There will be more of your time involved than would be the case if the property were in an English speaking country but then your time adds up to income.

[veritas]

Thank you

Sounds like a gift. Check the instructions to Form 3520 Part IV if it meets that requirement for filing the form.

I was not sure how to report a gift from a foreign person. My client does not know the amount of money at this point.

What my client was interested in is the tax the German authorities may impose. My response was I had no idea as to German tax laws.

[Gretel]

[QUOTE=veritas;61678
What my client was interested in is the tax the German authorities may impose. My response was I had no idea as to German tax laws.[/QUOTE]

Veritas, I don't know much about German gift tax laws. Only that it is the opposite of the USA. Meaning, in Germany the receiver of gifts or inheritance has to pay tax. If your client doesn't live in Germany and doesn't file taxes he might not have to pay any tax at all since in the USA the tax burden is with the donor.

If you need more help please let me know. I can e-mail you or call you.

[Black Bart]

Gretel

Sorry. I have deleted my post and if you edit your post to remove my quote, then it will be off the board.

[veritas]

Update

I suggested my client have her attorney contact the attorney in Germany directly.

The second option may be to have my client go to the German consulate for assistatnce.

[Gretel]

Sorry. I have deleted my post and if you edit your post to remove my quote, then it will be off the board.

Thanks, BB, I didn't even think there was a way out.