A client of mine has been renting out a property in USA jointly with 2 other people. An accountant is preparing the accounts for the property, but just need some guidance on how this works.
Usually I would complete his self assessment tax return with employment and self employment, but this year I have to deal with this propery income.
Would I complete the foreign pages? Would the accountant class this as a partnership and just need to split any profit ans loss between the 3 people?
You will need to know how much of the rental income and expenses is for your client, seeing as there is a partnership between 3 people here.
You will need to complete the Foreign pages of the SA and will also need to know if any tax has been paid for double taxation if necessary and the type if income ie remittance or arising - was the money brought back to the UK?
Also, all figures will be in sterling on the SA and not dollars.
If would all depend on the ownership split, if each owned a third, then yes split 3 ways. You'd need to see the contract of ownership (if they have one!), mortgage details etc etc, but if they have an accountant doing the books already, he should be able to tell you all you need to know in regard to the split, income and expenses etc - after all thats what he's paid for.
I would deal with it in the same way as domestic property income, just a different form to complete. There is no partnership as such, perhaps that was the wrong wording to use, sorry about that, don't want to confuse you, so just the one extra form - the foreign page. I would not worry about the other parties unless they are your clients also.
