[Sunnyshores]

Trophy, who is your property management agent ?

Your understanding is as mine is, apart from I think the Agency has to withold x% of all your rental income. Actually that must be true as they are supposed to withold % of all rent whoever your tenant is. Its just that in practise the IRS would never know unless its S8, so they dont tend to bother.

I dont understand your double taxation comment:
IRS want tax from all people making any income from work/assets in their country, so they need to 'identify' all people with a SSN or ITIN. So, you owe USA tax (tax year ends December, you pay in April).

The UK then wants to tax all UK citizens whereever and however they earn their money. So, you owe UK tax.

Luckily, there is this agreement where you can deduct the amoutn paid in US taxes from the UK amounts owed - thus the total you are paying is whatever is the highest tax in UK or US.

I'll hunt out other emails I have from IRS with details on and post later.

PS you also have to file a New York State annual tax return, I havent many details of this yet.