Move to NJ from UK – 2 possible scenarios.
Jun 13th 2016, 2:42 pm
#1
Forum Regular
Thread Starter
Joined: Jan 2016
Posts: 33
Move to NJ from UK – 2 possible scenarios.
Hi All,
We are moving to New Jersey on a green card in Sept / Oct this year. I am still unclear with housing so writing this post please provide your valuable inputs.
Scenario 1: Due to various uncertainty & issues attached to housing (lived in from last 2.8 years) we have decided to sell our house before we move to USA. So will the below implies to us.
* CGT in UK?
* Any tax on foreign exchange for sale of house?
* Can I transfer large chuck of funds from UK to USA bank account? Any formalities to be completed for this or just instruct money transfer specialist in UK?
*Will USA government require any proof how I have the money which I am transferring from UK?
Scenario 2: We have to enter USA by mid October and maybe because of EU referendum we are unable to sell our house soon so If we enter USA by Aug / Sept and then our house sells in late 2016 or early 2017 do we have to pay
*CGT in UK?
*Any tax on foreign exchange for sale of house?
*Any other Tax to be paid to USA government as we sold the house in UK after becoming USA immigrant .
Will appreciate your inputs on above 2 Scenario please.
Best Regards
We are moving to New Jersey on a green card in Sept / Oct this year. I am still unclear with housing so writing this post please provide your valuable inputs.
Scenario 1: Due to various uncertainty & issues attached to housing (lived in from last 2.8 years) we have decided to sell our house before we move to USA. So will the below implies to us.
* CGT in UK?
* Any tax on foreign exchange for sale of house?
* Can I transfer large chuck of funds from UK to USA bank account? Any formalities to be completed for this or just instruct money transfer specialist in UK?
*Will USA government require any proof how I have the money which I am transferring from UK?
Scenario 2: We have to enter USA by mid October and maybe because of EU referendum we are unable to sell our house soon so If we enter USA by Aug / Sept and then our house sells in late 2016 or early 2017 do we have to pay
*CGT in UK?
*Any tax on foreign exchange for sale of house?
*Any other Tax to be paid to USA government as we sold the house in UK after becoming USA immigrant .
Will appreciate your inputs on above 2 Scenario please.
Best Regards
Jun 13th 2016, 2:54 pm
#2
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Move to NJ from UK – 2 possible scenarios.
Scenario 1.
No.
No.
Yes, just do it (your bank might be cost competitive if you ask for a "dealing desk rate", which is available for such a large sum),
but ....
No, but you should offer/provide the information to your bank (and so far as you are able, make sure that the information is recorded in your bank file/records) as without it your account activity might be deemed "suspicious" by your bank and reported to FinCEN (a agency division under the IRS). Do this BEFORE the money arrives, so the bank knows it is coming.
Scenario 2.
No.
No, but there could be tax on a notional foreign exchange "gain" on the loan if paying off your mortgage required few dollars at current rates than you received (adjusted for principal already repaid) when you took out the mortgage.
No, so long as the gain, calculated under US IRS rules didn't exceed $500,000 if you're married, or $250,000 if you're not married.
No.
No.
Yes, just do it (your bank might be cost competitive if you ask for a "dealing desk rate", which is available for such a large sum),
but ....
No, but you should offer/provide the information to your bank (and so far as you are able, make sure that the information is recorded in your bank file/records) as without it your account activity might be deemed "suspicious" by your bank and reported to FinCEN (a agency division under the IRS). Do this BEFORE the money arrives, so the bank knows it is coming.
Scenario 2.
No.
No, but there could be tax on a notional foreign exchange "gain" on the loan if paying off your mortgage required few dollars at current rates than you received (adjusted for principal already repaid) when you took out the mortgage.
No, so long as the gain, calculated under US IRS rules didn't exceed $500,000 if you're married, or $250,000 if you're not married.
Last edited by Pulaski; Jun 13th 2016 at 2:59 pm.
