RENTAL INCOME IN ENGLAND

Forum|Forum|2 years ago
February 10, 2024
2 replies
17 views

Hi to all,

Client green card holder lives in the U.S. and has a rental income in England and he said I paid my tax for 2023 in Jan 2024 for this rental.

Can I take this one for 2023 his tax return which I want to file it or should I take the last one he paid in Jan 2023 as foreign tax?

Any insight or guidance would be greatly appreciated!

ProSeries Professional

This topic has been closed for replies.

Camp1040

Level 10

Tax is deductible in the year paid.

itonewbie

Level 15

UK tax is assessed on a fiscal year basis, which does not align with the calendar-year-basis US tax year. When credit is to be take would depend on whether the taxpayer elected accrual basis and when actual taxes are paid/deducted.

---------------------------------------------------------------------------------Still an AllStar

HOPE2Author

Level 7

@itonewbie Thanks for your help

so he paid tax on 01/14/2024 I should mention this date on his tax return on Part II and marked Accrued. Am I right?

This is the first time I am filing.

Also, Proseries on the top form 1116 says : Form not required to be filed

When I Printpreview I can not see form 1116 on his return but the result is in Sch 3

itonewbie

Level 15

@HOPE2 wrote:

@itonewbie Thanks for your help

so he paid tax on 01/14/2024 I should mention this date on his tax return on Part II and marked Accrued. Am I right?

No. First, did your client elect or is your client electing accrued basis? Also, 1/14/2024 was the date the tax was paid, as you stated, not the date on which the tax was accrued.

Also, Proseries on the top form 1116 says : Form not required to be filed

You need to be driving the software, not the other way around. Read the filing instructions for F.1116 and §904(j) for when the exception applies.

As suggested previously, you should familiarize yourself with the international provisions (beyond these basic questions), not only for your clients' benefit but to be compliant with Circular 230, if you are picking up expats and international returns. There is much much more than meets the eyes with these returns and the exposure for your clients and yourself are high.

---------------------------------------------------------------------------------Still an AllStar

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