phish

First time completing a tax return after a full year as tax resident in 2019.

When figuring out the cost of the property in the UK for deprecation purposes, would I use the 2019 FX rate or the exchange rate of the year I purchased the property - 2016?

Cook_County

Neither. Unless the property is a QBU you use the spot rate for the date of purchase. In the US you'll want Schedule E, Form 4562, Form 8852, Form 8858 & Form 1116.

phish

Noted, thank you!

Will take a look at those other forms and make sure they're completed - hoping Turbotax will check most of them off.

Pulaski

You realize that you're only depreciating the structure, not the value of the land, right?

phish

Yes, I believe that is what Turbotax has done.


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Cost I included actual value that I paid for it, plus solicitor fees and stamp duty.

Land value I figured as the property value only, multiplied by a factor of 15%. The property is one of six flats in a single building.

Pulaski

That sounds like a reasonable percentage for a small block of flats.