Giantaxe

Looks like you should have given the government an interest free loan then - BP shares have declined in value by 40% since the start of '08...

exvj

The bottom is where I bought em and that's why its a 8% dividend where it is now

If it isnt the bottom, the dividend yield will go up - BP confirm they are keeping it at the present level

People who think gasoline will stay at $1.80 from now on should definitely not buy them - and they should buy some holy land soil in a jar for $50 while they are at it. I know a penniless postman who has several of these jars to bring him luck. He is 40 years old, no girlfriend and no car - cant afford a dating agency or a car or BP shares as he has spent his money on lucky soil from the holy land....

My investment strategy is somewhat different - I have been buying and selling BP shares for 30 years and NEVER lost. Buy cheap sell high

ps BP up 5.1% this morning compared to friday close

lansbury

How are you getting your police pension paid without tax being deducted.

When I asked the Inland Revenue of whatever they are called these days I was told it was a government pension and therefore had to be taxed in the UK. The right to choose where to pay tax on it under the tax agreement between UK and USA didn't apply to government pensions.

If you have found a way around that I would like to know as it would save me quite a bit of money each month having it taxed in the USA.

exvj

Ah well in the detail is the devil - I was only with Police for 6 years whilst I was kiddy and I cashed out my pension when i left in 1974

Then I have a 100% private pension that I have just (today ! ) got tax clearance on from the UK - it took me 2 attempts since Nov 2007 to get clearance - they are going to send me a refund back to 2007 but i will have to declare some of that on my US forms as i got double tax on it (well some of it and some carried forward)- nightmare sorting it

Then I have another Pension from a UK 'quango' - its classed as 'government' so I believe the correct treatment is that its taxed in the UK and I dont even have to declare it on my US return - and of course i wont get double tax relief either - that is the same treatment as yours ?

Then I will get the state pension at 100% which will be taxable in the US and inflation hike proofed (arent we lucky - not all countries have that)

lansbury

That is the way our CPA has done our tax return for the last 2 years, he doesn't even show my UK police pension. I did question if my UK pension should be declared on my US tax return and the UK tax paid on it subtracted from any US tax due which is the way I understood it should be done but he says he is doing it correctly.

Jerseygirl

Once a US resident don't you have to declare all worldwide income...whether you've already paid tax in another country or not?

exvj

Yes he is doing it correctly - I reckon it's the only item of worldwide income that does not have to be even declared ----'government pensions' and they are taxed back in the Uk instead

ok next question

does the uk set the personal allowance of £5k - ish against it

My little govt pension is actually under that so i am hoping no tax at all

My private pension is worth having and thats why I skip from florida to washington state - 2 of the very few with no income tax

Doing tax now and its a nightmare - using turbo tax which is crap compared to last year's program

I have 9 foreign bank accounts and shares and mutual funds and forex trading ! and all the foreign stuff with 2 different kinds of pensions and all working on april to march tax year

carry forwards of double tax are % restricted so the c/f on my 2007 double tax on interest will be lost now i dont have passive foreign interest - the banks stopped taxing it for me... so all c/f will be lost - drat

It will keep me busy til the nice weather comes

Wifey couldnt believe that most people in the UK dont even get a tax form sent to them...

PS government pensions are those for WORKING for the government - not the state pension

lansbury

Yes you get the standard personal allowance.

Interesting your comment on State income tax. If it isn't being declared for Federal tax, State income tax seems only payable on declared Federal income.

lansbury

That's what I always thought, but apparently UK government pensions which are taxed in the UK, you have no choice in that, are exempt.

Our CPA doesn't declare ours nor does exvj and someone else has told me they don't declare theirs either. Becoming a US Citizen doesn't change that either.

exvj

Usual blah blah is that each State is different and some just base it on the FED return, and some have their own basis which includes owned assets even including cash and motorbikes and cars !

So far I have avoided it by living in Washington State and Florida - both of which have no income tax

I reckon California's is big - pushing 10% - Florida makes up with huge property taxes - So washington state is best - provided you dont mind living in a bloody desert 150 miles from the nearest city - or going west and living under a permanent foggy cloud with horrendous traffic

Anyway - finally done my tax and all set now for future year's which wont be any more complex.. less complex now i wont be paying any tax in the uk at all

Next year I can just drop the figures in

I got 3k allowance for share losses this year which you dont get in the UK - and losses on forex too ! But no £9k capital exemption here....

However, the US pays more tax than the UK - just on a FED level - with property tax and state tax it's hugely more. Somebody has to pay for all that ordnance to drop on Afghan wedding parties and to buy the Israelies an abrams tank and an F15 each

as for VAT and Petrol taxes, I have spent more on Doctors and dentists this year than i would have thought possible

On balance- so long as I live in a State where there are no income taxes, it will be bearable - and bear in mind that at an exchange rate of 1.40, a $20 pair of jeans has gone up 50% in the last year from when the ex rate was 2.04

I account in GBP so all my US costs are up 50% just from exchange rates

Jerseygirl

I still thought you had to declare it...even if you don't pay US tax on it.

exvj

Nope it's 'outside the scope' of US tax - special fix between the 2 governments... bit like the queen giving george bush a new yoyo to play with to keep him occupied so he doesnt do any more harm

Its an advantage to have the UK personal allowance though - i think thats really sweet....

I can't think of anything else that isn't declarable

Let's see - if I find 10k in the street and nobody claims it and the police hand it back to me - is that declarable ?

Never happened so I wont ponder

Jerseygirl

Yes I realise that...but I still thought all worldwide income must be declared to the IRS...irrespective of whether it's already been taxed or not...or whether there is an agreement between the countries.

Note I said declared...which is not the same as having to pay tax on it.

exvj

Yes that's the general rule - but then they list exceptions - one in this case

It's a bit like torture - we don't torture ever

except when we have to and it's quite rare..

I would try and find the relevant statute but I am setting off for blighty via seattle this evening so I have my ironing to do...

I thought UK tax was bad and I had to re-sit the tax exam in my CPA final exam - but the US tax code is awful !

exvj

I know this isnt specific but it gives the clue that the US as my country of residence is not allowed to tax everything if the treaty forbids it

General Rule: Treaties—Pension/Annuity Articles
As a general rule, the pension/annuity articles of most tax treaties allow the country of residence (as determined by the residency article) to tax the pension or annuity under its domestic laws. This is true unless a treaty provision specifically amends that treatment. Some treaties, for example, provide that the country of residence may not tax amounts that would not have been taxable by the other country if you were a resident of that country. In some cases, government pensions/annuities or social security payments may be taxable by the government making the payments. There also may be special rules for lump-sum distributions. You need to look at each treaty carefully.


http://www.irs.gov/businesses/articl...187083,00.html