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Selling UK house

Selling UK house

Old May 11th 2020, 5:44 pm
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Default Selling UK house

Hi All,

I bought my house in London in 2010 for 440K GBP and I moved to the USA in 2015.

I am aware of the effects of the forex gains :-(

In terms of US CGT, will that be based on the value on the purchase date in 2010 (when I lived in the UK) or 2015 (when I moved to the USA please)?
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Old May 11th 2020, 5:56 pm
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Default Re: Selling UK house

The date of purchase is the date that is used in US CGT calculations, for both the gain on the home and the FX gain/ loss on the repayment of the loan.
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Old May 11th 2020, 9:35 pm
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Default Re: Selling UK house

Originally Posted by Pulaski View Post
The date of purchase is the date that is used in US CGT calculations, for both the gain on the home and the FX gain/ loss on the repayment of the loan.
Not the answer I especially wanted but thankyou Pulaski.
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Old May 12th 2020, 3:21 am
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Default Re: Selling UK house

Originally Posted by capin View Post
Not the answer I especially wanted but thankyou Pulaski.
You're welcome ...... but that is why I always recommend that anyone coming to live in the US from the UK, sells their home in the UK before they become subject to US taxes (or at very least while they still have the allowance for a gain on your home) unless either [1] they are 100% certain that they will return to the UK,. or [2] they are equally certain that they will never sell the home and will be leaving it in their will.
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Old May 25th 2020, 12:02 am
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Default Re: Selling UK house

Originally Posted by Pulaski View Post
You're welcome ...... but that is why I always recommend that anyone coming to live in the US from the UK, sells their home in the UK before they become subject to US taxes (or at very least while they still have the allowance for a gain on your home) unless either [1] they are 100% certain that they will return to the UK,. or [2] they are equally certain that they will never sell the home and will be leaving it in their will.
if moving on a K1 visa how soon will I be subject to US taxes. Still waiting for my case to reach London embassy after getting case number. But I own a house with my mum who does not want to sell or move and house is in my name and will have to continue paying mortgage when she gets a lodger. Hoping to sell it eventually though but the deposit was paid by my mum and we have a deed of trust so not sure how that will work with regards to taxes either.
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Old Yesterday, 1:51 am
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Default Re: Selling UK house

Originally Posted by nikkif99uk View Post
if moving on a K1 visa how soon will I be subject to US taxes. Still waiting for my case to reach London embassy after getting case number. But I own a house with my mum who does not want to sell or move and house is in my name and will have to continue paying mortgage when she gets a lodger. Hoping to sell it eventually though but the deposit was paid by my mum and we have a deed of trust so not sure how that will work with regards to taxes either.
On a K1 you have a few options for when your tax residency begins:
  1. Declare yourself as a tax resident for the entire year in which you marry
  2. Become a tax resident after you've been in the USA for 183 days (substantial presence test)
  3. When you become a permanent resident (green card test)
I would get it all squared away before you move. Can your mom go ahead and buy the house from you?
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Old Yesterday, 11:39 am
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Default Re: Selling UK house

Originally Posted by tom169 View Post
On a K1 you have a few options for when your tax residency begins:
  1. Declare yourself as a tax resident for the entire year in which you marry
  2. Become a tax resident after you've been in the USA for 183 days (substantial presence test)
  3. When you become a permanent resident (green card test)
I would get it all squared away before you move. Can your mom go ahead and buy the house from you?
my mum has no savings everything is invested in the deposit and doesn’t qualify for a mortgage and usually only works 8 hours a week but nothing right now as socially isolating but not furloughed as only a newsagents and her choice to not work. So either sell which she doesn’t want to and with current climate not sure it’s a good time to sell or her bf move in and covers the mortgage
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