pk
Level 15
Level 15

Deductions & credits

@flyoverfred ,  Article 6.1 through 6.3 of the  USA-UK tax treaty allows  ( and in your particular situation ) to tax rental income from  the property situated  in the UK and owned by a resident of the USA.  Article 13 covers the taxability  of the gains from alienation of real property situated in the UK by a resident of the USA --- in this case  the operative portion of the sentence is "may be taxed " -- thus  while UK "may tax the gains" it also does not preclude USA from taxing the  gain.  Note that  the gain computation  under the US tax laws  is not congruent  with that of the UK and of course US taxes  US person ( citizen/resident--GC holder / resident for tax purposes ) on world income while UK taxes all on in-country sourced income.  However to ameliorate the  burden of double taxation, US does allow  credit or deduction of taxes paid to another  taxing authority  when both admins are taxing the same income.

So, I am afraid  your internet information regarding this situation (only )  is /was not correct.

Is there more I can do for you ?