Re: UK rental income. Is it taxed?
Originally Posted by nun
(Post 12142497)
You can be a US tax resident without being a US permanent resident. What visa do you have?
I pay taxes here, I am just not sure if I should disclose this income 1. becuase I disclose in the UK 2. it is below thresholds. |
Re: UK rental income. Is it taxed?
Originally Posted by Andrew_365
(Post 12142531)
L1B
I pay taxes here, I am just not sure if I should disclose this income 1. becuase I disclose in the UK 2. it is below thresholds. |
Re: UK rental income. Is it taxed?
Don't forget you'll be filing an FBAR each year reporting the UK bank account.
|
Re: UK rental income. Is it taxed?
also when you do declare - the uk mortgage interest can be used to offset some of your tax liability
|
Re: UK rental income. Is it taxed?
Originally Posted by MsElui
(Post 12142560)
also when you do declare - the uk mortgage interest can be used to offset some of your tax liability.
Your mortgage interest will reduce your taxable income, leading to a lower tax liability. In practice the other deductions allowed by the IRS for tax on rental income will likely reduce your taxable rental income down to a very low figure, or even create a tax loss, which you might be able, at least in part, to set against your earned income. |
Re: UK rental income. Is it taxed?
Originally Posted by Andrew_365
(Post 12142531)
L1B
I pay taxes here, I am just not sure if I should disclose this income 1. becuase I disclose in the UK 2. it is below thresholds. |
Re: UK rental income. Is it taxed?
Originally Posted by mrken30
(Post 12139218)
Rental income is excluded from the double taxation treaty.
On going tax filing is doable , the UK tax software is more expensive than the US software, around £99 ish. They don't allow non resident to file using HMRC website |
Re: UK rental income. Is it taxed?
Our UK rental income doesn't get taxed in the UK as it falls under the allowance.
However we end up getting taxed on it in the US which wipes out any 'profit' we make on it. |
Re: UK rental income. Is it taxed?
Originally Posted by H Bomb
(Post 12150124)
Our UK rental income doesn't get taxed in the UK as it falls under the allowance.
However we end up getting taxed on it in the US which wipes out any 'profit' we make on it. |
Re: UK rental income. Is it taxed?
Originally Posted by Pulaski
(Post 12150133)
You have taxable profits after deducting mortgage interest, insurance, repairs and maintenance, management fees, and depreciation on the building (2.5%) and appliances (20%)? :unsure:
We get a few hundred more in rent (after management fees) versus our mortgage payment so that is actual profit/money in the bank at the end of the month - however that is pretty much the same as what we end up having to pay as tax. At the end of the day it is costing us nothing (at the moment) and tenants are slowly paying off our mortgage as house prices (hopefully) go up so cannot complain. |
Re: UK rental income. Is it taxed?
Originally Posted by H Bomb
(Post 12150143)
That's how you do the tax.
We get a few hundred more in rent (after management fees) versus our mortgage payment so that is actual profit/money in the bank at the end of the month - however that is pretty much the same as what we end up having to pay as tax. At the end of the day it is costing us nothing (at the moment) and tenants are slowly paying off our mortgage as house prices (hopefully) go up so cannot complain. |
Re: UK rental income. Is it taxed?
Originally Posted by H Bomb
(Post 12150143)
That's how you do the tax.
We get a few hundred more in rent (after management fees) versus our mortgage payment so that is actual profit/money in the bank at the end of the month - however that is pretty much the same as what we end up having to pay as tax. At the end of the day it is costing us nothing (at the moment) and tenants are slowly paying off our mortgage as house prices (hopefully) go up so cannot complain. |
Re: UK rental income. Is it taxed?
Originally Posted by H Bomb
(Post 12150143)
That's how you do the tax.
We get a few hundred more in rent (after management fees) versus our mortgage payment so that is actual profit/money in the bank at the end of the month - however that is pretty much the same as what we end up having to pay as tax. At the end of the day it is costing us nothing (at the moment) and tenants are slowly paying off our mortgage as house prices (hopefully) go up so cannot complain. |
Re: UK rental income. Is it taxed?
Originally Posted by HartleyHare
(Post 12150163)
We were in the same situation when we let our UK house during our 2 year stint in the US. I think the first year was fine as we had tax credits carried over, but 2nd year we were taxed around $4k, .....
If you can't show a tax loss on rental property, you need a better tax accountant! :lol: |
Re: UK rental income. Is it taxed?
Originally Posted by H Bomb
(Post 12150124)
Our UK rental income doesn't get taxed in the UK as it falls under the allowance.
However we end up getting taxed on it in the US which wipes out any 'profit' we make on it. I looked this up today and the threshold is £2500, above which you have to register as a non resident landlord. |
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