Selling house when 1 of us has already moved…
#1
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Joined: Jun 2022
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Selling house when 1 of us has already moved…
Hi,
my husband and I are in the process of figuring out our move home, we have lived in the USA for 8yrs but it is time to return. I had a question about the implications of selling our USA house. I understand that if we sell before we become tax resident in uk again that we will only pay tax on the sale here in the USA… however, what if I return home to uk and begin working, therefore becoming tax resident, and my husband stays behind in the USA to sell the house, ship the furniture etc? Since we’re both on the deed for the home, does this mean that when we sell, if I am tax resident in the uk at that point, that we will have to pay tax on the sale in the uk also?
thanks for any advice you guys can give us, trying to get organized but there is soooo much to consider!
my husband and I are in the process of figuring out our move home, we have lived in the USA for 8yrs but it is time to return. I had a question about the implications of selling our USA house. I understand that if we sell before we become tax resident in uk again that we will only pay tax on the sale here in the USA… however, what if I return home to uk and begin working, therefore becoming tax resident, and my husband stays behind in the USA to sell the house, ship the furniture etc? Since we’re both on the deed for the home, does this mean that when we sell, if I am tax resident in the uk at that point, that we will have to pay tax on the sale in the uk also?
thanks for any advice you guys can give us, trying to get organized but there is soooo much to consider!
#2
Re: Selling house when 1 of us has already moved…
Firstly so long as you lived in the home for a minimum of 24 months, unless the gain on your home exceeds $500k there won't be any tax due in the US. Ditto UK, except there is no upper value limit to the gain, and (IIRC) no minimum period of occupation either.
If either one of you is living in the home pending sale, the partial exemption (US) or exemption (UK) to capital gains tax still applies. .... Given that both the US and UK allow for sale during a (relatively generous) time period after you move out and still benefit from the exemptions from CGT, I don't think that you moving out early and returning to the UK, is likely to be any sort of issue for you, especially given the way that most houses are currently being snapped up in the US.
If either one of you is living in the home pending sale, the partial exemption (US) or exemption (UK) to capital gains tax still applies. .... Given that both the US and UK allow for sale during a (relatively generous) time period after you move out and still benefit from the exemptions from CGT, I don't think that you moving out early and returning to the UK, is likely to be any sort of issue for you, especially given the way that most houses are currently being snapped up in the US.