Mercury39

Once resident in the US, will the irs want to get CGT on the property when sold, so even if you avoid it in the uk by selling in less than 18 months, it might still need to be paid in the US? Or does us consider it a primary residence?

zzrmark

The answer is in your post!!

Pulaski

Yes, and you might have a capital gain on the payoff of your mortgage, because it took fewer dollars to pay off the balance than you received when you took out the mortgage. Say you borrowed £120,000 when the exch rate was $2/£1, so you borrowed $240,000 from the IRS's perspective. Several years later, after you have paid off £20,000 and moved to the US you sell the house and pay off the mortgage. The exch rate is now $1/€1, so you pay £100,000, but at today's rate, from the IRS's perspective, it only cost you $100,000, not the $200,000 (paid down part of what) you received. You have a taxable gain of $100,000!

UK2toUSA

Hi All ,
Many thanks for all the great responses much appreciated. My respond to the post is below.

Mrken30 mentioned[/U][/B] - I have just moved my UK pension. I found someone in the UK that could manage that for me as a US resident. But it took some work – Would you be kind enough to provide this person name so I can also use his/her services.

Can someone answer this please - Can UK driving license be exchange /transferred to new jersey DL or one has to start from scratch like here in the UK.

Now on to very imp point CGT - I would not like to pay CGT ( I am paying and have paid more than enough from last many years via taxes to HMRC)
Can the below scenario work .

Since I was born in Asia and my extended family is still resides in Asia so Whenever I decide to sell my house in UK can I transfer all the funds to Asia into my brother account (after clearing the balance amount of mortgage to the bank) .

What are implications of it ?

What if I don’t pay CGT in UK ?

Suppose if I have to pay CGT in UK ( as I don’t know the rules ) and I don’t declare it to USA govt that I have sold my house and move the funds to Asia.

Can someone explain how this works in layman terms.
Thanks
V

kodokan

Implications: it's tax evasion for CGT, and I think gift tax, as you'd be 'giving' this money to your brother. The money would also presumably be in your UK bank account at some point, so you'd need to declare it for FBAR/ FATCA purposes. (I think it would be very, very hard to get your house sale solicitor to sign off on sending the funds to an account in Asia that didn't have your name on it.)

The world is becoming a very small place, financially...

mrken30

I found my adviser on the pensionwise website and just contacted a few asking if they could deal with US residents.

Worst that can happen evading US taxes, is a fine and federal prison, not sure about UK tax evasion.

Wintersong

This question was already answered with this link: State of New Jersey - Motor Vehicle Commission

You will need to take a vision test, a written test and a driving test. You have 60 days after becoming resident in NJ to do so.

jsted

Are you sure about this? Fact you are non resident may throw up a lot of questions. I feel you may have to pay US tax on this income

Any light on this??

HartleyHare

http://britishexpats.com/forum/usa-5...rience-803790/

I've attached a link to a thread I posted back in 2013 of our experience of obtaining a NJ driving license. You'll just need to check if there's been any changes.

nun

If you are non-resident an R105 can be filed to get UK tax free bank interest. Other ways to avoid UK tax are to have the money in a cash ISA or if the interest is below the personal allowance apply for it as a UK citizen by filing an R43. If you are a US resident the UK interest will be fully taxable.

kodokan

Banks aren't obliged to accept an R105; I know First Direct doesn't. We're not holding any significant amount of money in the UK - enough for a small monthly life insurance premium, and trips there - so I just keep it in interest-free checking to save having to remember to go through months of statements and declare 20p.

If interest rates ever go up again, I might change my mind.

Owen778

Fixed your post.