Glossary · US Tax
Schedule E
Schedule E reports rental income, royalties, and income from partnerships and S corporations on a US return. Americans in the UK use it to report UK rental property to the IRS alongside their UK tax position.
Supplemental Income and Loss (Form 1040)
In more detail
Schedule E reports income and loss from rental real estate, royalties, and pass-through entities. For a US person letting UK property, the rental profit is reported here in US dollars, with US rules on allowable expenses and depreciation that differ from HMRC treatment. US tax depreciation is mandatory and has consequences on sale through depreciation recapture. Foreign tax credits generally relieve the UK tax paid.
Does Schedule E apply to your situation?
Cross-border tax turns on the detail of your circumstances. Book a consultation and we'll tell you exactly where you stand.