# Foreign passive income



## Alltimegreat1 (Feb 25, 2015)

I'm an American living in Germany with my German wife and dual citizen son. My wife has an ITIN but no green card or other US residency permit. We file our US taxes jointly using the FTC.
We're considering buy some property in Germany to rent out. Since this income is technically not earned income, will I be taxed by both countries on it? Does it make a difference if I file FTC or FEIE?


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## Bevdeforges (Nov 16, 2007)

Rental income is not considered "earned" income, so the FEIE is not applicable. You shouldn't be taxed twice on the same income in any event. The standard rule of thumb is that the country in which the property is located has "first dibs" on taxing the income from the property - so your first obligation will be German taxes on your rental property. You then take the FTC against any tax generated on your US forms by the rental property.
Cheers,
Bev


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