avoiding capital gains tax on foreign property

[John Stanley]

I'm a US citizen living in Germany, where I am buying rental property. The law here is that if the property is sold after >10 years' ownership, there is no tax on the capital gains. However, I would have to declare this gain on my US tax filing. I'm wondering if I can start a business to buy the property and then keep all the proceeds in the business to reinvest. I might take a small amount out as business income and would then only declare this on my US taxes. Is this legal? Or would I then have to file a separate US return for the business?