My husband and I are US citizens living in the UK and we own two rental properties for investment purposes. We do not have a legal entity in the UK, so the properties are directly owned by the two of us. Should we be designated as a "foreign branch" and thus submit form 8858, or is it sufficient to report rental activity on Sched. E? If we did submit form 8858, does this have any adverse effect on our tax position? Thanks in advance.
