selling your UK house
Jul 27th 2006, 9:36 pm
#1
sun lover
Thread Starter
Joined: Jul 2006
Location: Mesa - AZ
Posts: 271
selling your UK house
My family and I have been living in the US for the past 18 months, (green cards due in a few months) we have decided to sell our house in the UK, are there any tax implications anyone knows about???
Jul 27th 2006, 11:05 pm
#2
Joined: Oct 2002
Posts: 1,750
Re: selling your UK house
Originally Posted by sambuc
My family and I have been living in the US for the past 18 months, (green cards due in a few months) we have decided to sell our house in the UK, are there any tax implications anyone knows about???
Jul 27th 2006, 11:31 pm
#3
Back where I belong!
Joined: Aug 2005
Location: Melbourne, Oz to Banbury, England to El Mirage, AZ & now back to England!
Posts: 5,989
Re: selling your UK house
Originally Posted by Chorlton
I sold mine prior to leaving, so I am not the expert, but I know that if you attempt to transfer a large sum of money then several authorities will take an interest, one of which might be the IRS. Not much help, I know.
Jul 28th 2006, 12:32 am
#4
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Joined: Dec 2005
Posts: 88,022
Re: selling your UK house
Originally Posted by Chorlton
I sold mine prior to leaving, so I am not the expert, but I know that if you attempt to transfer a large sum of money then several authorities will take an interest, one of which might be the IRS. Not much help, I know.
US banks have to notify the IRS of amounts over $10K going into or out of all accounts. Do a search through past threads...this was discussed a month or so ago.
Aug 6th 2006, 12:31 am
#5
Just Joined
Joined: Mar 2006
Posts: 2
Re: selling your UK house
There can be capital gains tax issues. The IRS allows single filers to exclude $250 000 of the capital gain on your "main residence", $500 000 for married couples filing jointly.
This exclusion only applies if you pass three tests, one if which is that you used and occupied the house for 24 months out of the last 60. So it is important to complete the sale within 3 years of arriving in the US. (Even if you live in an apartment here in the US, your physical presence here likely makes the apartment your main residence.)
(I learned this lesson the hard way... see my post from earlier in the year. And there is another hassle: the IRS demands that you convert all pound prices/values to dollar prices/values that prevailed on the appropriate dates in the past. So you can end up being charged capital gains tax on exchange rate fluctuations.)
All of the above assumes that you are taxed as a US resident (i.e. you file a 1040EZ or 1040), rather than a non-resident (you file a 1040NR). I don't know for sure what the situation is for non-residents. (I believe non-residents do not pay capital gains tax on non-US assets, but if you are getting a green card soon then you will definitely be classed as a US resident for tax purposes. An LPR who files a non-resident return would lose their green card.)
IRS publication 523 sets out the capital gains tax rules for your main residence.
This exclusion only applies if you pass three tests, one if which is that you used and occupied the house for 24 months out of the last 60. So it is important to complete the sale within 3 years of arriving in the US. (Even if you live in an apartment here in the US, your physical presence here likely makes the apartment your main residence.)
(I learned this lesson the hard way... see my post from earlier in the year. And there is another hassle: the IRS demands that you convert all pound prices/values to dollar prices/values that prevailed on the appropriate dates in the past. So you can end up being charged capital gains tax on exchange rate fluctuations.)
All of the above assumes that you are taxed as a US resident (i.e. you file a 1040EZ or 1040), rather than a non-resident (you file a 1040NR). I don't know for sure what the situation is for non-residents. (I believe non-residents do not pay capital gains tax on non-US assets, but if you are getting a green card soon then you will definitely be classed as a US resident for tax purposes. An LPR who files a non-resident return would lose their green card.)
IRS publication 523 sets out the capital gains tax rules for your main residence.
Last edited by RaleighGuy; Aug 6th 2006 at 12:34 am.
Aug 6th 2006, 1:08 am
#6
Blondie22
Joined: Nov 2005
Posts: 2,738
Re: selling your UK house
Originally Posted by RaleighGuy
There can be capital gains tax issues. The IRS allows single filers to exclude $250 000 of the capital gain on your "main residence", $500 000 for married couples filing jointly.
This exclusion only applies if you pass three tests, one if which is that you used and occupied the house for 24 months out of the last 60. So it is important to complete the sale within 3 years of arriving in the US. (Even if you live in an apartment here in the US, your physical presence here likely makes the apartment your main residence.)
(I learned this lesson the hard way... see my post from earlier in the year. And there is another hassle: the IRS demands that you convert all pound prices/values to dollar prices/values that prevailed on the appropriate dates in the past. So you can end up being charged capital gains tax on exchange rate fluctuations.)
All of the above assumes that you are taxed as a US resident (i.e. you file a 1040EZ or 1040), rather than a non-resident (you file a 1040NR). I don't know for sure what the situation is for non-residents. (I believe non-residents do not pay capital gains tax on non-US assets, but if you are getting a green card soon then you will definitely be classed as a US resident for tax purposes. An LPR who files a non-resident return would lose their green card.)
IRS publication 523 sets out the capital gains tax rules for your main
residence.
This exclusion only applies if you pass three tests, one if which is that you used and occupied the house for 24 months out of the last 60. So it is important to complete the sale within 3 years of arriving in the US. (Even if you live in an apartment here in the US, your physical presence here likely makes the apartment your main residence.)
(I learned this lesson the hard way... see my post from earlier in the year. And there is another hassle: the IRS demands that you convert all pound prices/values to dollar prices/values that prevailed on the appropriate dates in the past. So you can end up being charged capital gains tax on exchange rate fluctuations.)
All of the above assumes that you are taxed as a US resident (i.e. you file a 1040EZ or 1040), rather than a non-resident (you file a 1040NR). I don't know for sure what the situation is for non-residents. (I believe non-residents do not pay capital gains tax on non-US assets, but if you are getting a green card soon then you will definitely be classed as a US resident for tax purposes. An LPR who files a non-resident return would lose their green card.)
IRS publication 523 sets out the capital gains tax rules for your main
residence.
Mmmmm...., An introduction might be nice! Hello newbie!
Aug 6th 2006, 4:01 am
#7
Account Closed
Joined: Mar 2004
Posts: 2
Re: selling your UK house
Originally Posted by Jerseygirl
US banks have to notify the IRS of amounts over $10K going into or out of all accounts. Do a search through past threads...this was discussed a month or so ago.
But whether you are subject to UK CGT, unlikely, or US CGT, if you tell them, is another issue.
