To sell or rent our house? Tax Issues.
Jul 21st 2009, 1:25 pm
#1
Forum Regular
Thread Starter
Joined: Sep 2008
Location: St Louis
Posts: 61
To sell or rent our house? Tax Issues.
I have my I130 (Green Card) interview in London next week and should get my clearance to move to the USA. My wife is a USC and has lived with me, UKC, in the UK for the last few years.
Our property has been up for sale for a while with no takers though we haven't dropped the price to rock bottom yet.
Our equity in the house is less than the $250K the IRS use for exclusions - think I'm reading this right but please put me right if I'm wrong.
I'm thinking that rather than putting the price down to 'fire sale' level we would rent it out for a while and rent a property in the USA for say 6 months while we narrow down a neighborhood/ property to buy. We have enough savings to finance this but we would need to dispose of the UK property ASAP when we buy in the USA as we really don't want a mortgage.
So we could have a situation where we are in the USA, earning rent in the UK (though my calcs suggest we will not make any profit on this, possibly a small loss each month) for a while and then when we sell our UK property we will transfer the capital to the USA to buy a house or pay off a "bridging loan".
Any help on the possible tax libility would be appreciated?
Our property has been up for sale for a while with no takers though we haven't dropped the price to rock bottom yet.
Our equity in the house is less than the $250K the IRS use for exclusions - think I'm reading this right but please put me right if I'm wrong.
I'm thinking that rather than putting the price down to 'fire sale' level we would rent it out for a while and rent a property in the USA for say 6 months while we narrow down a neighborhood/ property to buy. We have enough savings to finance this but we would need to dispose of the UK property ASAP when we buy in the USA as we really don't want a mortgage.
So we could have a situation where we are in the USA, earning rent in the UK (though my calcs suggest we will not make any profit on this, possibly a small loss each month) for a while and then when we sell our UK property we will transfer the capital to the USA to buy a house or pay off a "bridging loan".
Any help on the possible tax libility would be appreciated?
Jul 21st 2009, 3:30 pm
#2
BE Enthusiast
Joined: Jul 2003
Location: New York City
Posts: 611
Re: To sell or rent our house? Tax Issues.
Hi: check out a recent thread we had on a similar topic- that should get you started
http://britishexpats.com/forum/showt...43#post7731843
http://britishexpats.com/forum/showt...43#post7731843
