Do I need to declare a home I own in the UK while I'm living in the US?

Hi everyone,

I'm a UK citizen, and became a US Permanent Resident this year, I live in the US with my wife (a US citizen).

My question is: I have a mortgage on a house that I currently rent out in the UK (so I don't think it counts as my home). The total income from the rent is c.£13000 and the amount of capital I have in the house is c.£125,000. Do I need to file a FinCEN form 114 for this foreign asset? More importantly, would I need to pay US taxes on either the capital or the income?

I know I need to file an FBAR for my UK bank account, but the rules on foreign assets are quite confusing, my wife and I are filing a joint tax return.

Many thanks

No need to file FBAR or 8939 for foreign real estate that you own yourself.

As a US resident your worldwide income is US taxable....that includes income from foreign real estate. You will have to pay UK tax on the UK rental income and then take a foreign tax credit on your US taxes.

If you sell the home you will be liable to capital gains in the UK and the Us according to the usual rules for real estate.