US resident alien sale of share of UK investment rental property

[mikeo24]

I have a client who is a US resident alien (green card holder married to a US citizen). He was a part owner of an investment rental property located in London. His co-owners "bought him out" in 2017. How would you report this transaction? Schedule D using Form 4797?

[AZUKHiker]

Treat The Same As A US Sale

As your client is a US Resident Alien the sale is treated the same as the sale of a US rental property. i.e 4797 through to Sch D.

Of course also look out for all the usual foreign financial account issues due to the proceeds, i.e. FBAR, Form 8938 etc.

[mikeo24]

US Resident alien

Thank you for the FBAR and 8938 reminder!