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Consequences of UK mortgage repayment whilst resident in USA

Consequences of UK mortgage repayment whilst resident in USA

Old Feb 5th 2015, 1:30 am
  #31  
JAJ
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Default Re: Consequences of UK mortgage repayment whilst resident in USA

Originally Posted by yellowroom
Sorry to indulge in thread necromancy, but in preparing for this years tax return I realise may have inadvertently fallen foul of this rule.

I was in the US for just under 3 years on an L1 visa and returned to the UK at the end of July 2014. In August 2014, I paid off my UK mortgage using UK savings - they had been offsetting the interest for a while and I needed to take a loan out, and the bank said ok, as long as you pay off your mortgage first.

From the discussion above, I'm hoping I'll be able to rely on the fact I am not a US citizen and I ceased being resident in the US for tax purposes when I moved back to the UK (as told by my tax adviser on another matter before this cropped up), so the 'gain' happened when I was back in the UK.

Otherwise I owe the IRS in the region of $3-4k, and of course the exchange rate has changed enough since last summer that it would actually cost me more in ££ to pay the tax bill. The whole situation makes me very
Read the earlier parts of the thread to understand the issue better, but you should perhaps understand that: a. if you were no longer US tax resident, it's not an issue, b. if it's part of a non-U.S. business activity (incl. rental) it's normally not an issue and c. (and you won't read this on forums in general), there is no evidence to suggest that IRS are really looking to enforce such theoretical tax rules on small scale private activities.
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