Moving money into and out of US
If I move my family to the US on a sponsored visa, does anyone know if there are any complications to be aware of with regard to moving money into the US to purchase a house?
And later, if the H1B ends or we decide to move the family back, is there any issue with moving the proceeds of the house sale back to the UK? Is there CGT (equivalent) in the US attributed to your main residence when selling if you are a foreigner on a H1B? Thanks for any help here. This stuff is so complex! |
Re: Moving money into and out of US
Originally Posted by Nimco
(Post 10317958)
If I move my family to the US on a sponsored visa, does anyone know if there are any complications to be aware of with regard to moving money into the US to purchase a house?
And later, if the H1B ends or we decide to move the family back, is there any issue with moving the proceeds of the house sale back to the UK? Ian |
Re: Moving money into and out of US
Originally Posted by ian-mstm
(Post 10318082)
Yes - you will be liable for US tax with respect to any capital gain on the sale.
Ian You should also check for any FBAR (Foreign Bank Account Report) requirement if the proceeds from your house sale take your total UK bank account balances over US $10k whilst liable for US taxes - e.g. if you have the proceeds in your UK account when you take up residency in the US or they pass through your UK account prior to sending them to the US if you complete the sale after you move. Again, these are reporting requirements. |
Re: Moving money into and out of US
Originally Posted by rpjs
(Post 10318247)
But for sale of your primary residence there's a $250k exemption per person which you and your spouse can combine if you file as married filing jointly (so $500k in total)
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Re: Moving money into and out of US
And thank you both for this help!
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Re: Moving money into and out of US
Rent - you'd be nuts to buy when only on an H1B.
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Re: Moving money into and out of US
Originally Posted by Nimco
(Post 10318327)
Is this exemption allowable against the profit?
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Re: Moving money into and out of US
Originally Posted by Cape Blue
(Post 10318380)
Rent - you'd be nuts to buy when only on an H1B.
You're tied to an employer, if the employer lets you go or goes under, you have to find another employer to take over the H1B sponsorship within a couple of weeks (IIRC), otherwise you'll find yourself on the way back home with no ifs or buts. Owning a house doesn't change any of that, all it means is that you'll end up having to pay the mortgage on a house that you can't live in. Unless you pay cash for the house, in that case you'll "just" end up paying property taxes and insurance on something that you *might* be able to rent out. If you do need a mortgage, there's a big question if you can even get one - most banks here tend to not extend credit past your H1B expiry date, although I'm not sure if that's the same with mortgages. Plus, you don't have a US credit history in the first place and you'll need to establish one before someone will lend to you unless we're talking punitive rates here. |
Re: Moving money into and out of US
Originally Posted by Cape Blue
(Post 10318380)
Rent - you'd be nuts to buy when only on an H1B.
Not only for the points made in the post above...it just costs a hell of a lot more to sell a place in the US compared to the UK, 6%...so just not worth it for a few years if things don't work out, not to mention you not knowing the area well, nor the potential life style issues of the area. |
Re: Moving money into and out of US
Originally Posted by Bob
(Post 10321677)
This.
Not only for the points made in the post above...it just costs a hell of a lot more to sell a place in the US compared to the UK, 6%...so just not worth it for a few years if things don't work out, not to mention you not knowing the area well, nor the potential life style issues of the area. |
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