rjm_cmyk

I have an almost dormant UK LTD company of which I am sole director. The reason I've not closed it down is that it is there is a commercial property lease in it's name. That property is now "sub-let" to a friend who runs his business there. He pay me rent and pay for the landlord with my LTD company. That's about the only transaction I use it for.

The company pays no dividends (no profit reported) and has no payroll.

As it's my first tax year in the US I'm trying to work out how to report it. Needless to say my company accounts do not run Jan/Dec with the last set being 13/14

Any thoughts or pointers gratefully received.

nun

Well if you owned the rental yourself you'd just have to report the rent minus depreciation and expenses to the IRS. But as it sounds like like a foreign company owns the property and the rent (ie passive income) is all that it produces I wonder if PFIC is an issue. I'd ask a CPA.

rjm_cmyk

My company doesn't own the property so I can't see PFIC applying. It is the named entity on a lease with a commercial landlord and which has a couple of years to run.

nun

So the company sublets to your friend, I'd still ask about PFIC.