yet another pension question! - unusual UK pension situation
#16
Re: yet another pension question! - unusual UK pension situation
I find myself in somewhat of a similar situation to you Angelman in that my parents, both in their mid eighties, enjoying retired life in the U.K., have a commercial property with two self contained apartments above. My parents use the commercial as their retirement income and a dozen years ago gifted an apartment each to both my sister and myself. As we both own one apartment each and the commercial property ( come the fearful day of both parents departing) will be left to the two of us as part of their estate, equal 50/50 split.
I can foresee inheritance issues with the commercial rental income as I’m permanently settled out here in the USA, thus gaining naturalization June 2020. We (thankfully) don’t have your headache of the pension issue that you find yourself with but I will have to find direction and advice on my fifty percent of the business premises as far as declaration on my 1040 tax return.
I’ll keep tabs on any updated news on your situation on this link.
I can foresee inheritance issues with the commercial rental income as I’m permanently settled out here in the USA, thus gaining naturalization June 2020. We (thankfully) don’t have your headache of the pension issue that you find yourself with but I will have to find direction and advice on my fifty percent of the business premises as far as declaration on my 1040 tax return.
I’ll keep tabs on any updated news on your situation on this link.
#17
Re: yet another pension question! - unusual UK pension situation
The tax issues are only slightly more complex than for owning rental property in the US - notably applying the exchange rate to the income, and knowing the tax rules for non-US investgments in real estate. .... You will need to find out what, if any, depreciation you will be allowed i.e. can you depreciate your share of the value of the building when you inherit it? FYI depreciation of investment property (value of the building not the land) is mandatory per US IRS rules, and for properties outside the US the rate is 2.5% pa i.e. straight line over 40 years.