UK USA Taxes

Go Back   Expat Forum For People Moving Overseas And Living Abroad > Americas > USA Expat Forum for Expats Living in the USA

USA Expat Forum for Expats Living in the USA The USA Expats forum is dedicated those individuals that have chosen to make the USA their new home. This forum is an ideal place for Expats now living in the United States to meet and discuss all aspects of their new way of life.

UK USA Taxes


Reply
 
Subscribe to this Thread Thread Tools
  #1 (permalink)  
Old 5th August 2020, 10:02 PM
New Member
 
Join Date: Aug 2020
Posts: 1
Rep Power: 0
onedah is on a distinguished road

Default UK USA Taxes

Hi,

I live in the USA and have file taxes in the UK and USA, I just completed my UK taxes for 2019 - I have a rental property and the income was under the UK allowance so owe nothing to HMRC.

Question: when I complete my US taxes would I still need to declare the income from the property in US? If Yes - sounds like you end up paying tax anyone in 1 or the other country?

Thanks

Reply With Quote Quick reply to this message
  #2 (permalink)  
Old 6th August 2020, 02:13 AM
Member
 
Join Date: Feb 2017
Location: Oz
Posts: 672
Rep Power: 0
Moulard is on a distinguished road
91 likes received
17 likes given

Users Flag! Originally from usa. Users Flag! Expat in australia.
Default

Assuming that you are a tax resident of the US (highly likely given the fact you state you like in the US) then you must report and pay tax on your global income to the IRS - including you UK rental income.

The UK will have the primary taxing right on income from UK real property.

The tax treaty would allow you to claim a tax credit for UK taxes paid or accrued.

But... given you owed no UK tax on the income, then there is nothing to claim on your US return...

So you will end up paying the US tax rate on that income to the US.

If, hypothetically, you paid the equivalent of $200 USD in UK taxes and owed $300 USD in US taxes on it, you would be able to claim a tax credit for the $200 you paid to the UK, and thus only have to pay $100 to the US..

If the numbers were the other way round, you would pay $300 to the UK, claim a credit for $300 in the US, and be able to carryover the extra $100 to offset future tax liability of foreign income.

I am not familiar with the vagaries of the US-UK tax treaty, so this is a general comment that aligns with the model treaty.. you may wish to read the US-UK treaty and any technical memorandum (the easier for a human to read interpretation). It is always possible that the two countries negotiated a different arrangement for income from real property.

Reply With Quote Quick reply to this message
  #3 (permalink)  
Old 19th August 2020, 04:18 AM
New Member
 
Join Date: Aug 2020
Posts: 6
Rep Power: 0
johnalcera is on a distinguished road
1 likes received

Default

The UK will have the primary taxing right on income from UK real property.

Reply With Quote Quick reply to this message
Reply


Quick Reply
Message:
Options

Register Now

In order to be able to post messages on the Expat Forum For People Moving Overseas And Living Abroad forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:
Location
Where you live
Expat From Country
Please select the country you originate from. This will appear as a flag when you make posts on the site.
Expat To Country
Please select the country you have either moved to or want to relocate to. This will be presented on the site when you make posts.

Log-in


Thread Tools

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


FORUM PARTNERS

ExpatForum.com is owned and operated by VerticalScope Inc.

Retiring Overseas Guides | Moving Overseas Guides | Cost of Living | Health Care Guides


All times are GMT. The time now is 11:23 AM.


Powered by vBulletin®
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.