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Taxable Assets?

Taxable Assets?

Old Jan 2nd 2015, 5:07 pm
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Question Taxable Assets?

I co-own a property in the UK (which is rented out) and I was wondering what's the maximum amount we can receive before it's taxable?

I fully intend to declare it- but I believe (I maybe wrong) there is an amount which I can receive before I need to pay tax.

Just don't know what that amount is..
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Old Jan 2nd 2015, 5:18 pm
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Default Re: Taxable Assets?

I believe you need to to state any income above $10,000 for tax purposes regardless of where you get it.
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Old Jan 2nd 2015, 5:19 pm
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Default Re: Taxable Assets?

$10,000?

I'm not getting that much it's less than that..
Thank you..
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Old Jan 2nd 2015, 5:21 pm
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Default Re: Taxable Assets?

That's total income. From all sources combined.
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Old Jan 2nd 2015, 5:26 pm
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Default Re: Taxable Assets?

How much tax (if any) you end up paying will depend on your total income (and how you file your taxes).

There is an income threshold below which you do not need to file.

For example if you file as "married filing separately" and your income is less than $3950 then you do not have to file.

See Publication 17 (2014), Your Federal Income Tax for details
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Old Jan 2nd 2015, 5:26 pm
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Default Re: Taxable Assets?

Originally Posted by Hotscot View Post
That's total income. From all sources combined.
That is only for FBAR foreign asset account reporting. As far as income, you have to declare all income whether foreign or domestic. The IRS does not giver special tax treatment by hiding income from a foreign country. If someone pays foreign taxes on that income, that can be used to offset US taxes owed and in the case of rentals, mortgage interest, maintenance, depreciation, and management fees are deducted to determine the taxable amount..

Last edited by Michael; Jan 2nd 2015 at 5:33 pm.
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Old Jan 2nd 2015, 5:46 pm
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Default Re: Taxable Assets?

Originally Posted by brit_usa2014 View Post
I co-own a property in the UK (which is rented out) and I was wondering what's the maximum amount we can receive before it's taxable?

I fully intend to declare it- but I believe (I maybe wrong) there is an amount which I can receive before I need to pay tax.

Just don't know what that amount is..
There are two different answers being given here. Let's present them both:

1. Income: Below a certain level of total income, you are not required to file a tax return with the IRS (though it may be worthwhile if you might be due a refund). However, if you are required to file a return, all income must be reported.

2. Assets: Michael is talking about reporting of foreign assets (not necessarily ones that generate income). However, FBAR and FATCA reporting is concerned with financial accounts, not real estate. If you hold the property directly, and not through a company that you own, it is not relevant for these forms. If you have bank accounts that receive the rent from the property, though, these would be reportable, providing you meet the reporting requirements.
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Old Jan 2nd 2015, 5:52 pm
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Default Re: Taxable Assets?

I am not working here in the USA and like I mentioned in my OP, I co-own 1 property in the UK which is being rented out. My share of income (?) from that property is a lot less than $10,000!
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Old Jan 2nd 2015, 6:03 pm
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Default Re: Taxable Assets?

Originally Posted by brit_usa2014 View Post
I am not working here in the USA and like I mentioned in my OP, I co-own 1 property in the UK which is being rented out. My share of income (?) from that property is a lot less than $10,000!
Are you a US citizen?
Are you located in the US?
Do you normally submit a US tax return?

Depending on your status you may or may not be below the filing threshold.

Here's the latest numbers.

http://www.irs.gov/publications/p501...link1000270109
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Old Jan 2nd 2015, 6:06 pm
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Default Re: Taxable Assets?

Originally Posted by Hotscot View Post
Are you a US citizen?
Are you located in the US?
Do you normally submit a US tax return?

Depending on your status you may or may not be below the filing threshold.

Here's the latest numbers.

Publication 501 (2014), Exemptions, Standard Deduction, and Filing Information
Nope, not a US citizen nor a PR holder
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Old Jan 2nd 2015, 6:13 pm
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Default Re: Taxable Assets?

It's not a quiz. It maybe helps if you detail your status when asking for advice.
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Old Jan 2nd 2015, 6:34 pm
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Default Re: Taxable Assets?

I believe, from other posts, that the OP is here on an H4 visa.

(which is why I quoted the "married filing separately" income threshold as an example)
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Old Jan 2nd 2015, 6:49 pm
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Default Re: Taxable Assets?

If your spouse holds an H1-B visa, and the income from this property is your only personal income for 2014, it is very likely that you would do better to file with your spouse as married filing jointly. Doing so would mean you'd have to go to the effort of reporting this income, but it would probably overall save you quite a bit of money. That does depend on your spouse's income and other factors too, though. You'd need to run your combined taxes both ways to be sure.
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Old Jan 2nd 2015, 6:55 pm
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Default Re: Taxable Assets?

Originally Posted by Owen778 View Post
If your spouse holds an H1-B visa, and the income from this property is your only personal income for 2014, it is very likely that you would do better to file with your spouse as married filing jointly. Doing so would mean you'd have to go to the effort of reporting this income, but it would probably overall save you quite a bit of money. That does depend on your spouse's income and other factors too, though. You'd need to run your combined taxes both ways to be sure.
Agreed, married filing jointly is usually the best (lowest tax) option, which would require reporting all non-US income.
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Old Jan 2nd 2015, 7:01 pm
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Default Re: Taxable Assets?

Originally Posted by brit_usa2014 View Post
Nope, not a US citizen nor a PR holder
If you want to file married filing separately and your income is below the standard deduction plus your exemption, you won't owe any US taxes. However your spouse will have to also file married filing separately and can't claim you as an exemption and will hit the 25% marginal tax bracket at $36,900 after deductions and exemptions instead of $73,8000 and will hit the 28% bracket at $74,425 instead of $148,850. In most cases, taxes will be significantly more if your spouse files married filing separately instead of married filing jointly (see marginal tax brackets below the tax calculator in the following link).

1040 Tax Calculator

Last edited by Michael; Jan 2nd 2015 at 7:03 pm.
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