Discussion:2nd Home in UK

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Discussion Forum Index --> Tax Questions --> 2nd Home in UK

Praheja (talk|edits) said:

16 March 2006
If a US Citizen buys a home in UK, can he/she deduct Mortgage Interest from this home as a vacation home?

GaryGauvin (talk|edits) said:

March 17, 2006
Absolutely YES. Property taxes too.

JHRTAXPREP (talk|edits) said:

18 March 2006
I had a client that was a UK citezen, but for the last two years has been residing in the US. He's been working in the US and will file his second tax return this year. He owns UK property that is rental property. Would it be reported on Schedule E and reduce or increase income as if it were property in the US??? What code section relates to this?

WillyB (talk|edits) said:

18 March 2006
Definitions: Resident alien Sec 7701(b).

PRKeating (talk|edits) said:

8 June 2006
I am a US Citizen who relocated to Spain in 2004 and now permenantly reside there. I am planning on purchasing a new home here and need assistance in filing my US return. I would love to find someone who could do both returns (Spain and US). Please Help as I am currently in the position of the Spanish advisor knowing nothing about the impact of my citizenship and the US advisor knowing nothing about the impact of my being in Spain.

Foxttron (talk|edits) said:

8 June 2006
PRK, even if you move "permanently" in Spain (not on a short or long term work assignment)you still have a "legal" obligation to file a US Income Tax return (on top of the spanish one.) You may take credit (in the US) for taxer paid in Spain (plus few other tax advantages.) You may still owe US tax if the taxes paid in Spain are lower of what would have been in the US. I can tell that there are few boutique tax preparation firm that can help you, even remotely. I suggest you look into it. One more thing, I would ensure that the Social Security paid to the US (and maybe now to Spain) is covered under the totalizaytion agreement, so you won't have trouble collecting from two countries when you retire.

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