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Anonymous
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I'm interested in using TurboTax Premier for a joint filing. We have a rental property in the UK that we own and make income off. Do the CPAs have knowledge of UK tax?

 
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2 Replies
SusanY1
Expert Alumni

I'm interested in using TurboTax Premier for a joint filing. We have a rental property in the UK that we own and make income off. Do the CPAs have knowledge of UK tax?

No, our CPAs cannot advise you regarding your tax obligations in the UK. We can, however, help you to enter the rental income as a foreign property on your US tax return. 

 

We can also advise you on how to take credit on your US tax return for any taxes that you may have paid to the UK on the same income.  

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Carl
Level 15

I'm interested in using TurboTax Premier for a joint filing. We have a rental property in the UK that we own and make income off. Do the CPAs have knowledge of UK tax?

A few things you need to be aware of.

 - I assume you (and spouse if applicable) are U.S. Citizens or legal aliens with a social security number.

 - Be aware that quite a large number of TTX users own foreign rental property and the TTX program has been dealing with it just fine for over 2 decades. So your situation is nothing new, and nothing special.

 - Pay attention to detail and read the small print on every screen. Your "in service" date is important. Foreign rental property placed in service *after* 2017 is depreciated over 30 years. Foreign rental property place in service in 2017 or before is depreciated over 39 years. Entering your in-service date is "vitally" important for this reason.

 - The program can deal with all foreign taxes paid with no problem. Not just foreign income tax either. I know you also pay property taxes in the U.K. So when asked for property taxes paid you'll just enter the dollar amount of those taxes you paid in that box. The fact they were paid to a foreign country doesn't matter.

- You will need to convert taxes paid in foreign currency, to U.S. currency values. See https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates for the conversion options available to you.

 

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