Hi,
Thank you for these responses. Again, these were extremely useful. I follow-up queries in two areas:
- One of the queries I had around the foreign tax credits was how to allocate the full year of UK tax to the period which overlaps with the US Tax year. Taking the example of 1 Jan – 5 April, would I just take the fraction of the year which this constitutes, (95/365), and multiply that by the full tax burden for the UK tax year?
- I have been having a go at figuring out the question of depreciation - thank you for the link (I then also looked at p.551 linked from p.527). A few queries here:
- As I look to Allocate and then Adjust the Basis should I be making the start date (the date when I first identify a Basis) the date when I took ownership of the property? Should I convert the GBP value into USD using the exchange rate as of that date and do no updating of the value (beyond the ‘adjustments’, which I can convert to USD as they occur)?
- I am hoping to use MACRS Alternative Depreciation System (ADS). Since if you rented the property in 2017 or prior the recovery period is 40 instead of 30 years, the following could be important. When are we defining that this property was 'placed into service'? It has been rented from prior to 2023, but can it be considered ‘in service’ at a stage in the past when I was not a US Person for tax purposes? (Note that re-reading your message I get the idea that it is possible I don't need to do the MACRS calculation; that I just need to enter the relevant info. and TurboTax will calculate in the background on some basis; still, I think ideally and probably in order to get the form done I need to identify that date).
Thank you again for all this help.
