Sharmacbrit

Hi all, we are moving back to GA after 16 years in the UK! I've been offered a job so that's covered. My question is we took the home exclusion in Feb 2021, so will be liable for CGT on our main home if we sell before Feb 2023, but I believe we may be eligible for a partial exclusion as I'm moving for work? The IRS calculator seems to indicate 20 months would allow a $230000 exclusion. Am I correct? ( Although we are married I am the sole owner)

tht

Do you file MFS then? Are you trying to avoid it / the proceeds becoming a joint asset? Or will the money be used to buy a joint property when you return?

sharmac

No we file mfj, but the irs publications seem to imply that for partial exclusion each of us needs to pass ownership test for 500k.We will probably purchase a US property jointly within a year.

tht

assume there would could be a way to make it a joint asset before selling… I guess the devil is in the detail, given the sun as involved may be worth investing in some processional tax planning advice.

I do recall similar ownership questions on schedule E.

Sharmacbrit

Thank you, yes I think pursuing the joint ownership option and some professional advice is the way forward..

Pulaski

I agree that is would be worth paying for some professional advice, given the potential downside if the calculation is wrong. My understanding, though theoretical as I have never needed to apply it in practice, is that assets such as a home are joint assets irrespective of whose name the asset is registered in.

tht

i think it varies by “state” I know some have the principle of pre-marital assets and others may make everything community property…

sharmac

As we are in the UK would it be the federal interpretation that matters?

tht

I meant “state” in a wider sense… like a country is a state… I assume if it’s a UK property that law would govern if it’s joint property.

Sharmacbrit

Oh I see thank you. No community property here as far as I know 😟