First, what is your residency status? If you are a non-resident, then you would need to file through Sprintax.com as TurboTax does not handle the 1040-NR.
If you are a US Resident for tax purposes then the following answers apply
1. Because my husband is in the UK and I will visit him frequently. We do not rent them out temporialry. I assume I do not need to report anything about these two flats to IRS, including Fbar, 8938. Is it correct? Correct. You do not need to report real estate personally owned to the IRS
2. When my husband moves to US, I guess we may rent them out. If we plan to rent them out, I assume we need to include it to 1040. I think I do not need to report it to Fbar and 8938 as well. Is it correct? Correct, you still would not need to report it on a FBAR and 8939, however, if you are collecting the rent in a foreign account, you may need to report that on the FBAR if at any time your total foreign accounts have a balance greater than $10,000. Also, since your husband is still there, you may need to file a FBAR now, if there are open bank accounts now.
3. May I ask how to calculate the profit? I assume (rent income - service charge fees from the building - ground rent from the landlord - renting agency fees - mortage interests)/2 for each of us. Yes, you would report all income and then expenses such as service charges, rent and mortgage interest on your return. If you are filing a joint return, you would report it all as one lump sum. If you are filing separate returns and both other it, then you would split it based on ownership percentages on your individual returns. Does my deductable items correct or anything more? If you pay utilities for the tenant or have to make any repairs, you would also be able to deduct them. And I assume I can also claim back the tax paid to UK government? Generally, yes, property taxes imposed on the rental property would be tax deductible. If you file a return to report the income in the UK, then yes, you can also claim a credit for foreign taxes paid.
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