Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Moving money into and out of US

Moving money into and out of US

Old Oct 7th 2012, 10:08 am
  #1  
Just Joined
Thread Starter
 
Joined: Mar 2012
Posts: 28
Nimco is an unknown quantity at this point
Default 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!
Nimco is offline  
Old Oct 7th 2012, 11:57 am
  #2  
Account Closed
 
Joined: Aug 2002
Location: Kentucky
Posts: 38,867
ian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond repute
Default Re: Moving money into and out of US

Originally Posted by Nimco View Post
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?
I don't believe there's a limit on the amount of money you can transfer. If the amount is over US$10,000, the financial institution is obligated to report the amount to the Department of the Treasury (for RICO purposes)... but it's a reporting obligation only... not a tax burden for you.


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?
Yes - you will be liable for US tax with respect to any capital gain on the sale.

Ian
ian-mstm is offline  
Old Oct 7th 2012, 3:02 pm
  #3  
BE Forum Addict
 
rpjs's Avatar
 
Joined: Sep 2010
Location: Sleepy Hollow, New York
Posts: 2,514
rpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond repute
Default Re: Moving money into and out of US

Originally Posted by ian-mstm View Post
Yes - you will be liable for US tax with respect to any capital gain on the sale.

Ian
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)

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.
rpjs is offline  
Old Oct 7th 2012, 3:51 pm
  #4  
Just Joined
Thread Starter
 
Joined: Mar 2012
Posts: 28
Nimco is an unknown quantity at this point
Default Re: Moving money into and out of US

Originally Posted by rpjs View Post
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)
Is this exemption allowable against the profit?
Nimco is offline  
Old Oct 7th 2012, 3:52 pm
  #5  
Just Joined
Thread Starter
 
Joined: Mar 2012
Posts: 28
Nimco is an unknown quantity at this point
Default Re: Moving money into and out of US

And thank you both for this help!
Nimco is offline  
Old Oct 7th 2012, 4:27 pm
  #6  
Democracy advocate
 
Cape Blue's Avatar
 
Joined: Mar 2006
Posts: 11,880
Cape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond repute
Default Re: Moving money into and out of US

Rent - you'd be nuts to buy when only on an H1B.
Cape Blue is offline  
Old Oct 7th 2012, 6:15 pm
  #7  
BE Forum Addict
 
rpjs's Avatar
 
Joined: Sep 2010
Location: Sleepy Hollow, New York
Posts: 2,514
rpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond reputerpjs has a reputation beyond repute
Default Re: Moving money into and out of US

Originally Posted by Nimco View Post
Is this exemption allowable against the profit?
Yes, the Capital Gain is the profit and you can also deduct selling costs too.
rpjs is offline  
Old Oct 8th 2012, 2:21 pm
  #8  
BE Enthusiast
 
Joined: Nov 2007
Location: Carson City, NV
Posts: 789
TimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of light
Default Re: Moving money into and out of US

Originally Posted by Cape Blue View Post
Rent - you'd be nuts to buy when only on an H1B.
This.

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.
TimNiceBut is offline  
Old Oct 9th 2012, 1:44 pm
  #9  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,729
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default Re: Moving money into and out of US

Originally Posted by Cape Blue View Post
Rent - you'd be nuts to buy when only on an H1B.
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.
Bob is offline  
Old Oct 9th 2012, 2:04 pm
  #10  
BE Enthusiast
 
Joined: Nov 2007
Location: Carson City, NV
Posts: 789
TimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of light
Default Re: Moving money into and out of US

Originally Posted by Bob View Post
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.
There might also be some sort of transfer/sales tax to pay on the sale of a house, so 6% might not include all the costs. Plus there is a chance that repairs are necessary (IIRC the previous owners of the place we just bought ended up having to pay a few grands' worth of repairs on a well maintained house).
TimNiceBut is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.