Skip to main content
June 5, 2019
Question

I have a rental property in the UK. I have declared on my UK tax return the income. Do I need to report the rental incoming in the US as then I'll be taxed twice

  • June 5, 2019
  • 2 replies
  • 0 views
No text available

2 replies

Employee
June 5, 2019

If you are a U.S. citizen or U.S. resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U.S. tax return. You must report these amounts whether they are earned within or outside the United States.

To avoid the double taxation, you can receive a foreign income tax credit or deduction for any income already taxed in another country.


**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
January 14, 2020

Hi


I am in the same situation, I have a UK property, I receive rent but also get taxed on any profit (after mortgage interest and expenses)

In TurboTax, where do I enter my rental income and how do I receive the credits so not to be taxed twice?

Best Greg

AmyC
Employee
January 14, 2020

Rental property goes on Sch E. The foreign tax deduction goes on Sch A while the foreign tax credit goes against your actual tax liability.

 

You must pick one, either the deduction OR the credit. If you are not itemizing, you will take the foreign credit on Form 1116. If you are itemizing, I suggest trying it both ways to see which is better for you.

 

The easiest navigation is to select the magnifying glass/search tool in the upper right hand of your screen. The first solution will be a "Jump to" when available. Sometimes the key is choosing the right words to put in the search bar.

 

* Type rental property and you get  Jump to rental property.

*Type foreign tax deduction and you get Jump to foreign tax deduction.

* Type foreign tax credit and you get Jump to foreign tax credit.

 

 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"