topic What is form 8858? Should I file a form 8858 when I have a foreign rental property? in Investors & landlords

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

janusw — Sun, 12 Apr 2020 21:43:33 GMT

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

DaveF1006 — Sun, 12 Apr 2020 22:00:56 GMT

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.

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

big toes — Sun, 10 Oct 2021 11:52:14 GMT

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.

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

Critter-3 — Sun, 10 Oct 2021 13:16:05 GMT

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

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

big toes — Sun, 10 Oct 2021 14:46:28 GMT

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/

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

Critter-3 — Sun, 10 Oct 2021 14:48:50 GMT

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.