US tax for UK property while in US on E2 Investor status
Aug 28th 2017, 8:00 pm
#1
Forum Regular
Thread Starter
Joined: Mar 2017
Location: Oregon
Posts: 84
US tax for UK property while in US on E2 Investor status
Hello,
Apologies as I know this subject has many, many threads. I have read and reread many pages of them but am receiving conflicting info from other sources. Can anyone clarify the following for me please, before we make an error and become liable for taxes?
- Arrived in the US January 2017 -with E2 investor visa status (non-resident alien).
- We own a property (mortgaged) in the UK, owned since April 2014.
- We stand to make some financial gain on the property (less than $150,000) if we sell now.
- We are currently residing in Florida but due to relocate to Oregon in September.
If I have calculated correctly we will have realized a currency gain in the eyes of the US at the point of sale.
We are not liable at present for UK capital gains tax.
1. Are we liable for US capital gains tax? (conflicting advice on this from various research).
2. Will we have to pay tax on foreign currency gains? (cannot determine if present status makes us liable? Conflicting sources again).
Has anyone been through this situation who is here via an E2 investor visa who can say what applied in their situation?
Apologies as I know this subject has many, many threads. I have read and reread many pages of them but am receiving conflicting info from other sources. Can anyone clarify the following for me please, before we make an error and become liable for taxes?
- Arrived in the US January 2017 -with E2 investor visa status (non-resident alien).
- We own a property (mortgaged) in the UK, owned since April 2014.
- We stand to make some financial gain on the property (less than $150,000) if we sell now.
- We are currently residing in Florida but due to relocate to Oregon in September.
If I have calculated correctly we will have realized a currency gain in the eyes of the US at the point of sale.
We are not liable at present for UK capital gains tax.
1. Are we liable for US capital gains tax? (conflicting advice on this from various research).
2. Will we have to pay tax on foreign currency gains? (cannot determine if present status makes us liable? Conflicting sources again).
Has anyone been through this situation who is here via an E2 investor visa who can say what applied in their situation?
Aug 29th 2017, 7:46 am
#2
BE Enthusiast
Joined: Nov 2012
Posts: 902
Re: US tax for UK property while in US on E2 Investor status
On the property sale the 2 out of 5 year rule applies. The mortgage gain is unavoidable.
I just need to work that figure out now and hope its not a crazy amount!
