British Expats - UK vs US Tax year alignment

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Re: UK vs US Tax year alignment

Quote:

Originally Posted by Cook_County (Post 12800233)

For 2019 you'll report UK rental income & expenses on Schedule E and Form 8858. You'll claim UK tax paid to HMRC on rental income during 2019, most likely on the passive Form 1116. Because of depreciation expense, the foreign tax may not result in a great deal if any reduction in US tax payable for 2019.

That makes more sense, thank you. I'm already showing a loss in 2019 for the rental income, so would it even be worth my time adding the foreign tax?

Re: UK vs US Tax year alignment

It is always prudent to claim foreign tax credits because excess credits carry forward for 10 years. Claiming the credit now might save tax in any of those 10 years.