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Topic: US Tax Filing - No income but own property  (Read 1071 times)

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US Tax Filing - No income but own property
« on: March 03, 2020, 01:34:36 PM »
This is a tricky one!  I am a US citizen living in Scotland.  I have my ILR.  My Scottish husband and I divorced.  I remain in the UK but have no income here.  I purchased an investment/rental property in Florida with money I received from the divorce thinking that I may return to the US at some point but, in the meantime, the property can pay for itself.  I purchased the property in June, 2019.  There is no mortgage as I paid cash.  There is no income really as the rent from the tenant pays the property's expenses and there is only around $50 left over each month.  I have no income from the US and I have no income in the UK!  What in the world am I supposed to do about US tax filing?  Also, when I moved here in 2011, I did not file any US taxes as I was not working so I haven't filed since I lived in the US because I never had an income.

Please help!


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Re: US Tax Filing - No income but own property
« Reply #1 on: March 03, 2020, 01:39:37 PM »
From a UK perspective you will register for self-assessment by 5 October 2020 and file a UK self-assessment return by 31 January 2020.

From a US perspective you are required to file the US income tax return for 2019 by 15 June 2020 and the FBAR for 2019 by 15 October 2020.


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Re: US Tax Filing - No income but own property
« Reply #2 on: March 03, 2020, 02:01:43 PM »
Will I have to pay tax for the property to the US?  Surely, there is a minimum threshold?  Also, as I haven't had any income in nine years and did not file US taxes for that reason am I going to get in trouble?


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Re: US Tax Filing - No income but own property
« Reply #3 on: March 03, 2020, 04:03:53 PM »
Will I have to pay tax for the property to the US?  Surely, there is a minimum threshold?  Also, as I haven't had any income in nine years and did not file US taxes for that reason am I going to get in trouble?

I don’t know if it is necessary  to file.

Personally, I would file a US tax return showing the net income from the rented house, and keep the paperwork as proof the net income is as low as it is.

At some point in the near or distant future you may well sell that house possibly triggering capital gains taxes so I would be sure to keep all the paperwork including profit and loss calculations on the house year by year.
Dual USC/UKC living in the UK since May 2016


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