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janusw
New Member

What is form 8858? Should I file a form 8858 when I have a foreign rental property?

 
5 Replies
DaveF1006
Expert Alumni

What is form 8858? Should I file a form 8858 when I have a foreign rental property?

You would only file a 8858 if you are part of a foreign business entity such as a Foreign partnership or corporation. If you own property independently, then you will not need it. Currently, Turbo Tax does not support 8858.  

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big toes
Returning Member

What is form 8858? Should I file a form 8858 when I have a foreign rental property?

Some articles mention that the filing requirement for 8858 has been expanded since 2018 to include almost any self employed U.S. person with business activity in foreign countries.

Critter-3
Level 15

What is form 8858? Should I file a form 8858 when I have a foreign rental property?

Rental properties reported on a Sch E are NOT business entities so that form is not needed as you are NOT self employed.

big toes
Returning Member

What is form 8858? Should I file a form 8858 when I have a foreign rental property?

Sorry, I was not clear. I was referring to my self employment. However, foreign rental income may be defined as a QBU (Qualified Business Unit)

https://www.law.cornell.edu/cfr/text/26/1.989(a)-1

 

The new instructions for form 8858 defines an FB (Foreign Branch)

"An FB is defined in Regulations section 1.367(a)-6T(g). For purposes of filing a Form 8858, an FB also includes a qualified business unit (QBU) (as defined in Regulations section 1.989(a)-1(b)(2)(ii)) that is foreign."

https://www.irs.gov/pub/irs-pdf/i8858.pdf

https://www.law.cornell.edu/cfr/text/26/1.367(a)-6T

 

This article seems to indicate that foreign rental income may require filing of 8838.

 

https://polaristax.com/the-expansion-of-the-form-8858-filing-requirement-2/

 

 

Critter-3
Level 15

What is form 8858? Should I file a form 8858 when I have a foreign rental property?

Then you will need to either navigate that form yourself or seek qualified help but I doubt you will get any advice in this forum since almost no one has completed that form. 

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