SadInStates

Or whatever the eqivilent is called in the States.
Does anyone know what happens about the money when we sell up in the states?

We have no mortgage here and we want to take the money back to put towards a mortgage in the UK, but that could be some way down the line as we;re thinking of renting to begin with.
I know in the UK you have up to 6 months to plough the money back into a home, but what are the rules here?

Thanks

jbrown

In the US, I believe there's a $250k or $500k CG allowance (i.e. the gain has to be this much) for a single or joint filing, respectively, and it doesn't matter how you use the money once the house is sold. I'm not 100% sure of the UK rules, but it should be a moot point unless you complete the sale from the UK after becoming resident.

SadInStates

Well we're going to be nowhere near reaching that amount! We may not have sold before we move though.

jbrown

As I said, I'm not 100% sure of the UK rules but, since it was your primary residence, I don't think you'll be exposed to CGT in the UK if the house is sold while you're resident in the UK (or exposed to CGT in the US). However, it may simplify things to sell while you're still resident in the US, if possible.