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  • FIRST POST
    • ManofLeisure
    • By ManofLeisure 7th Aug 18, 5:32 PM
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    ManofLeisure
    Income from USA property
    • #1
    • 7th Aug 18, 5:32 PM
    Income from USA property 7th Aug 18 at 5:32 PM
    I'm asking advice on behalf of a friend and hope this is the appropriate forum



    A friend's uncle ( Canadian, but resident in the USA) has recently died, leaving a very large and complicated Estate. The bequest to my friend is that he has the right to live/receive income in respect of a particular property during his lifetime, when it will then pass to two other family members. To date, the property has been used as a holiday let and my friend wishes to continue with this arrangement - maybe using it for his own purposes for a few weeks. The income from this rental currently grosses over 50,000. Can someone please advise about receiving income from the USA. Is there anything in particular that he has to do?
    Friend is retired and a higher rate tax payer.


    Thank you in advance and any advice is welcomed.
Page 1
    • xylophone
    • By xylophone 7th Aug 18, 5:50 PM
    • 26,088 Posts
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    xylophone
    • #2
    • 7th Aug 18, 5:50 PM
    • #2
    • 7th Aug 18, 5:50 PM
    https://www.gov.uk/tax-foreign-income

    may help.
    • Cook_County
    • By Cook_County 8th Aug 18, 7:08 PM
    • 2,934 Posts
    • 2,077 Thanks
    Cook_County
    • #3
    • 8th Aug 18, 7:08 PM
    • #3
    • 8th Aug 18, 7:08 PM
    Your friend will need an ITIN. It sounds to me that from a UK (and possibly US) perspective that your friend is a beneficiary of a foreign trust, so in the UK will report this as foreign trust income. In the States the trustees may give him a K-1 and 8805 or treat the income as his. Either way he'll want to make the net election and file annual Forms 1040NR. Start with an ITIN.
    • ManofLeisure
    • By ManofLeisure 9th Aug 18, 9:22 AM
    • 449 Posts
    • 1,034 Thanks
    ManofLeisure
    • #4
    • 9th Aug 18, 9:22 AM
    • #4
    • 9th Aug 18, 9:22 AM
    Your friend will need an ITIN. It sounds to me that from a UK (and possibly US) perspective that your friend is a beneficiary of a foreign trust, so in the UK will report this as foreign trust income. In the States the trustees may give him a K-1 and 8805 or treat the income as his. Either way he'll want to make the net election and file annual Forms 1040NR. Start with an ITIN.
    Originally posted by Cook_County

    Thanks for your help and guidance Cook_County - much appreciated.
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