Baadil

Hi,

When we move to UK (within a few months) we will be leaving two homes back in the US. We plan on renting these out since resale market is just not good right now to sell these properties without huge losses. Our rent from these properties will be less than the mortgage we will be paying for these homes.

My question is, do we show this income/loss somehow in UK on our taxes? what about our tax return here in the US? What I am worried about is that I don't want to end up paying 40% tax on this rental income which already does not cover the mortgage and I have to pay from pocket to keep them going.

Also, when we move to UK and file US tax return, do we enter UK mailing address or do we need to find a physical address in US (We can give a friend's address).

Thank you.

JAJ

You should be able to set mortgage interest against rental income (for tax purposes), to begin with.

Are you British citizens? If not, what will be your visa status in the U.K. as it may affect your tax position.

Baadil

I am not a British citizen (Wife and Kids are). I have the 10 year "Return to leave?" residency visa.

Thanks.

Tujeste

As regards US tax return - give IRS your UK address .... and start reading up on foreign income exclusion

Anders