Consequences of UK mortgage repayment whilst resident in USA
#31
Re: Consequences of UK mortgage repayment whilst resident in USA
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
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