Investment Dliemmas?
#32
Re: Investment Dliemmas?
I'm dubious about the utility of QROPS for UK expats moving to the US because they seem to be pretty expensive and the US/UK tax treaty covers pensions very well, but if you are persuaded to do a QROPS you should definitely do it BEFORE you move to the US and come under the regulation of the IRS. The IRS might well see the transfer of a UK pension to another pension plan outside the UK as a taxable event.
#33
Re: Investment Dliemmas?
I'm dubious about the utility of QROPS for UK expats moving to the US because they seem to be pretty expensive and the US/UK tax treaty covers pensions very well, but if you are persuaded to do a QROPS you should definitely do it BEFORE you move to the US and come under the regulation of the IRS. The IRS might well see the transfer of a UK pension to another pension plan outside the UK as a taxable event.
#34
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Re: Investment Dliemmas?
Thanks folks. Are the thresholds on an irs site?
#35
Re: Investment Dliemmas?
Yes, $10k in aggregate foreign financial accounts for FBAR and the 8938 limits are here.
http://www.irs.gov/pub/irs-pdf/i8938.pdf
http://www.irs.gov/pub/irs-pdf/i8938.pdf
#36
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Re: Investment Dliemmas?
OK - Re-awakening the thread here.
I have (only) about £70k in 2 UK personal pensions. I am now planning to leave them be as the IRS will not punitively tax me? Is that correct. As long as I complete the correct FBAR forms with my 1040?
I assume that once I reach retirement age and take a combination of lump sum and annuity I will pay tax -
1. Presume as a US resident I will not pay tax in the UK just in the US?
2. Given 1 is kind of correct, will the IRS tax the lump sum element or just the annuity income.
Thanks again.
I have (only) about £70k in 2 UK personal pensions. I am now planning to leave them be as the IRS will not punitively tax me? Is that correct. As long as I complete the correct FBAR forms with my 1040?
I assume that once I reach retirement age and take a combination of lump sum and annuity I will pay tax -
1. Presume as a US resident I will not pay tax in the UK just in the US?
2. Given 1 is kind of correct, will the IRS tax the lump sum element or just the annuity income.
Thanks again.
#37
Re: Investment Dliemmas?
I assume that once I reach retirement age and take a combination of lump sum and annuity I will pay tax -
1. Presume as a US resident I will not pay tax in the UK just in the US?
2. Given 1 is kind of correct, will the IRS tax the lump sum element or just the annuity income.
Thanks again.
1. Presume as a US resident I will not pay tax in the UK just in the US?
2. Given 1 is kind of correct, will the IRS tax the lump sum element or just the annuity income.
Thanks again.
#38
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Re: Investment Dliemmas?
Started the FBAR pdf.
I became and LPR on 18th November 2014, but have been in the country all of 2014.
I sold my ISAs (proceeds in my non interest attracting UK bank account) in September 2014. I am assuming I have to declare that I disposed of them on the 8938.
I also assume that I put my UK back account on an 8938.
Lastly, from the brief information you enter about the investment in Part V of the 8938 how do the IRS know not to impose any tax, say, on a British Personal Pension Plan.
And yes I will be getting a knowledgeable CPA.
I became and LPR on 18th November 2014, but have been in the country all of 2014.
I sold my ISAs (proceeds in my non interest attracting UK bank account) in September 2014. I am assuming I have to declare that I disposed of them on the 8938.
I also assume that I put my UK back account on an 8938.
Lastly, from the brief information you enter about the investment in Part V of the 8938 how do the IRS know not to impose any tax, say, on a British Personal Pension Plan.
And yes I will be getting a knowledgeable CPA.
#39
Re: Investment Dliemmas?
And you must declare any capital gains resulting from the disposal (plus any income in 2014)
I also assume that I put my UK back account on an 8938.
Lastly, from the brief information you enter about the investment in Part V of the 8938 how do the IRS know not to impose any tax, say, on a British Personal Pension Plan.
#40
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Re: Investment Dliemmas?
Ok thanks for the advice on these ones - heres a couple of follow up questions:
1) The ISAs I sold were in my name but my wife and I will be joint filing our taxes (I think).
According to the instructions for form 8938 I satisfy the threshold potentially as my total investments are over $100k during the year, despite that I sold them in September.
However this total includes personal pensions (paid up plans that I can move the funds around in so they aren't PFIC 'attractant's) that are not taxable. The ISAs at sale were valued around $87,700. Pensions around $137k. However the pensions are not taxable as per the previous advice in this thread. So, for stuff thats taxable do I actually fall below the $100k threshold anyway.
2) Related to my point above, do I need to put the pensions on the 8938 as they are not taxable. And, I am guessing from what you are saying, if I did put them on the form (as they can't easily differentiate what is/isn't taxable) they'd tax me on the gains made on them this last tax year?
I'll still of course do the FBAR for everything to comply with the treasure rules.
1) The ISAs I sold were in my name but my wife and I will be joint filing our taxes (I think).
According to the instructions for form 8938 I satisfy the threshold potentially as my total investments are over $100k during the year, despite that I sold them in September.
However this total includes personal pensions (paid up plans that I can move the funds around in so they aren't PFIC 'attractant's) that are not taxable. The ISAs at sale were valued around $87,700. Pensions around $137k. However the pensions are not taxable as per the previous advice in this thread. So, for stuff thats taxable do I actually fall below the $100k threshold anyway.
2) Related to my point above, do I need to put the pensions on the 8938 as they are not taxable. And, I am guessing from what you are saying, if I did put them on the form (as they can't easily differentiate what is/isn't taxable) they'd tax me on the gains made on them this last tax year?
I'll still of course do the FBAR for everything to comply with the treasure rules.
#41
Re: Investment Dliemmas?
Ok thanks for the advice on these ones - heres a couple of follow up questions:
1) The ISAs I sold were in my name but my wife and I will be joint filing our taxes (I think).
According to the instructions for form 8938 I satisfy the threshold potentially as my total investments are over $100k during the year, despite that I sold them in September.
However this total includes personal pensions (paid up plans that I can move the funds around in so they aren't PFIC 'attractant's) that are not taxable. The ISAs at sale were valued around $87,700. Pensions around $137k. However the pensions are not taxable as per the previous advice in this thread. So, for stuff thats taxable do I actually fall below the $100k threshold anyway.
2) Related to my point above, do I need to put the pensions on the 8938 as they are not taxable. And, I am guessing from what you are saying, if I did put them on the form (as they can't easily differentiate what is/isn't taxable) they'd tax me on the gains made on them this last tax year?
I'll still of course do the FBAR for everything to comply with the treasure rules.
1) The ISAs I sold were in my name but my wife and I will be joint filing our taxes (I think).
According to the instructions for form 8938 I satisfy the threshold potentially as my total investments are over $100k during the year, despite that I sold them in September.
However this total includes personal pensions (paid up plans that I can move the funds around in so they aren't PFIC 'attractant's) that are not taxable. The ISAs at sale were valued around $87,700. Pensions around $137k. However the pensions are not taxable as per the previous advice in this thread. So, for stuff thats taxable do I actually fall below the $100k threshold anyway.
2) Related to my point above, do I need to put the pensions on the 8938 as they are not taxable. And, I am guessing from what you are saying, if I did put them on the form (as they can't easily differentiate what is/isn't taxable) they'd tax me on the gains made on them this last tax year?
I'll still of course do the FBAR for everything to comply with the treasure rules.
#42
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Re: Investment Dliemmas?
OK, and thanks again.
NOw, you are the first person to mention the tax treaty in all of this. Do I 'elect the treaty' on the 8908 or on the 1040.
Just taking a breath, I am sorry to be such a newbie PITA but this forum is effectively the best research platform I've found.
NOw, you are the first person to mention the tax treaty in all of this. Do I 'elect the treaty' on the 8908 or on the 1040.
Just taking a breath, I am sorry to be such a newbie PITA but this forum is effectively the best research platform I've found.
#43
Re: Investment Dliemmas?
When I go home to the North of Scotland with my (ill?) gotten gains of my life I'm just tempted to say eff it...but I don't know what the risk of extradition back to the US will be, or confiscation of accounts etc...dogs dinner the US taxation system...
I suppose I could hire a specialist but I prefer to try to understand the process.
#44
Re: Investment Dliemmas?
OK, and thanks again.
NOw, you are the first person to mention the tax treaty in all of this. Do I 'elect the treaty' on the 8908 or on the 1040.
Just taking a breath, I am sorry to be such a newbie PITA but this forum is effectively the best research platform I've found.
NOw, you are the first person to mention the tax treaty in all of this. Do I 'elect the treaty' on the 8908 or on the 1040.
Just taking a breath, I am sorry to be such a newbie PITA but this forum is effectively the best research platform I've found.
#45
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Joined: Jun 2013
Location: SLC, UT
Posts: 199
Re: Investment Dliemmas?
Thanks very much again. All help much appreciated.