Tax Implications for US Citizen Buying Property in the UK

Hi All

I will have ILR later this year and the husband (UKC) and I (USC) are looking to buy a property in 2015.  I am trying to do the research as far as tax implications for a USC buying a property in the UK, i.e. do I pay property tax to the US?  what kind of paperwork does buying a house mean when filing taxes each year? what happens if we decide to rent the property or sell in the future? 

Does anyone know if there is some kind of overall guide to this type of thing?  My online searches are not bring up much information in one place.  Any help would be greatly appreciated.  Thank you in advance!

Good questions which I can't answer but tell you our circumstances when we owned a property in the UK while living in the US. (We moved to the USA with my work on a temporary assignment and after 5 years decided to stay here after being sponsored and obtaining a green card)

We didn't pay US property taxes.

While rented out we kept a profit and loss account and paid US taxes on the profit.

When we sold the house we reported the capital gain on our US taxes.

You will pay council tax in the UK if you live in the property, and you will not owe property taxes on the US as these are only owed on a US property.

If you live in it you could claim tax relief on interest paid. If its an investment property that you rent out you would declare any profits from renting it, not forgetting to depreciate fixtures and fittings as prescribed by the IRS, and pay any capital gains tax due upon selling. Its not that complicated, but takes a bit of working out when the two tax years are different!

Thank you both for your replies.  Doesn't seem as scary as I initially thought!