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Should I sell my UK property while I'm still non-US tax resident?

Should I sell my UK property while I'm still non-US tax resident?

Old Apr 22nd 2019, 8:31 pm
  #16  
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by Hotscot View Post
Originally Posted by guyintheus View Post
Yes I'm here on a non-immigrant visa. First line in my post ;-)
Wich one?
Do you knoe?
Tell me why it matters in answering the questions that I've asked, and I'll tell you ;-) ;-) winky face winky face
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Old Apr 22nd 2019, 8:45 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by guyintheus View Post
If I decided not to sell it and keep renting it - for how long would I be subject to the threat of CGT by the IRS (even after I left the US)? Presumably - for as long as I am a US tax resident?

Let's say I leave the USA permanently in mid-2024 - does that mean I wouldn't be able to sell it until 1 Jan 2025 without incurring potential IRS liability?
That is my understanding, but I am not 100% certain.
…. And if I don't leave - and I move to a green card - would it mean that I could never sell it without paying? Might 2019 (or at least up to August 2020) be my only window to sell, tax free? ….
Yes, unless you count it being in your will and passed to your heirs as in your estate it passes with a "free uplift" (no CGT is payable) at market value.
Sorry - another question: how would I go about moving 200k pounds into dollars? I've used Transferwise for small transfers but it seems to limit me to 2k per day.
Well you can use TransferWise, or other broker-remitters, for larger amounts, but if you go to your bank and ask them for "a dealing desk rate", which £200,000 would certainly qualify you for (the minimum is no more than £50,000 and might be as little as £25,000) then you get a commercial rate, the rate that corporations get when exchanging large sums, and that rate will be competitive with, or perhaps even better than, the TransferWise rate.
Originally Posted by guyintheus View Post
Tell me why it matters in answering the questions that I've asked, and I'll tell you ….
He likes to ask questions, but doesn't have a very large repertoire .

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Old Apr 22nd 2019, 9:21 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by guyintheus View Post
Tell me why it matters in answering the questions that I've asked, and I'll tell you ;-) ;-) winky face winky face
Cause people are interested.

Last edited by Hotscot; Apr 22nd 2019 at 9:49 pm.
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Old Apr 22nd 2019, 9:31 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by Hotscot View Post
Cause people are one person is interested.
FIFY
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Old Apr 22nd 2019, 9:48 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Maybe.
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Old Apr 22nd 2019, 10:45 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by Pulaski View Post
That is my understanding, but I am not 100% certain.

Yes, unless you count it being in your will and passed to your heirs as in your estate it passes with a "free uplift" (no CGT is payable) at market value.

Well you can use TransferWise, or other broker-remitters, for larger amounts, but if you go to your bank and ask them for "a dealing desk rate", which £200,000 would certainly qualify you for (the minimum is no more than £50,000 and might be as little as £25,000) then you get a commercial rate, the rate that corporations get when exchanging large sums, and that rate will be competitive with, or perhaps even better than, the TransferWise rate.

He likes to ask questions, but doesn't have a very large repertoire .
Thank you again. Very very useful.
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Old Apr 22nd 2019, 11:48 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by guyintheus View Post
Tell me why it matters in answering the questions that I've asked, and I'll tell you ;-) ;-) winky face winky face
A secret?
Just naturally curious.
Adds to the body of knowledge. Info helps others and is helpful. Some prefer not to be.

Last edited by Hotscot; Apr 23rd 2019 at 12:54 am.
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Old Apr 23rd 2019, 7:40 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by Hotscot View Post
A secret?
Just naturally curious.
Adds to the body of knowledge. Info helps others and is helpful. Some prefer not to be.
If it was helpful in answering the questions I asked, then I'd have mentioned it.

Go back to your first comment. "Hold on...how are you here? Which visa?"

Why so aggressive as a first response? Did it matter in answering my question about tax?

No. You're just being nosy. Which explains my oh so unhelpful stubbornness...
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Old Apr 24th 2019, 7:10 am
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

The visa/status you are currently here on does actually matter for tax. Certain visa types are exempt from the substantial presence test (mostly student related, but also some others including diplomats).

https://www.irs.gov/individuals/inte...oreign-persons

As Rete noted before you may also have
the option to elect to be a tax resident even if you don’t meet the substantial presence test.

Last edited by tht; Apr 24th 2019 at 7:27 am.
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Old Apr 24th 2019, 8:20 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by tht View Post
The visa/status you are currently here on does actually matter for tax. Certain visa types are exempt from the substantial presence test (mostly student related, but also some others including diplomats).

https://www.irs.gov/individuals/inte...oreign-persons

As Rete noted before you may also have
the option to elect to be a tax resident even if you don’t meet the substantial presence test.

Hi tht - Yes it is relevant, but not to my post. I had already mentioned that I did not meet the substantial presence test, and that there was no benefit in electing to be a tax resident. In fact, quite to the contrary. So it wasn't relevant in answering my question. He was purely being nosy! ;-)

Last edited by guyintheus; Apr 24th 2019 at 8:23 pm.
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Old Apr 24th 2019, 8:27 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

No.
I wasn't.
Like others, I have a great deal of knowledge about these matters and enjoy helping people.
Quite often OP's don't really know what's relevant or not.
That's exactly why you come seeking information from others, who often know more than you do, and who willingly give it..

Good luck!

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Old Apr 24th 2019, 8:52 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by Hotscot View Post
No.
I wasn't.
Like others, I have a great deal of knowledge about these matters and enjoy helping people.
Quite often OP's don't really know what's relevant or not.
That's exactly why you come seeking information from others, who know more than you, and who willingly give it..

Good luck!
There are two sorts of people who come to BE looking for tax or visa advice - there are those who are vague and unclear about their own situation, and are usually quite forthcoming in giving more details so that we can examine their situation and give them some hopefully useful advice.

Then there are those who give a clear and specific statement about their situation, "I have applied for a souse visa …", "my employer is transferring me and my visa application is in progress ….", or in this specific case GuyintheUS laid out everything we need to know in post #1, para #1, and there is no point in grilling such people, they have told us enough information, and repetitively asking for more info is unnecessary, pointless, and quite frankly, rude!

As is asking them what their job is, especially after they have already said something such as "tech sector", which makes it fairly clear that they don't intend to be more specific. AFAIK there are only a few of the BE regulars who have posted who their employer is, and many haven't even said what sector they work in, and there is absolutely no reason that anyone should be pressured into disclosing such personal information!

Last edited by Pulaski; Apr 24th 2019 at 9:17 pm.
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Old Apr 24th 2019, 9:14 pm
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

I don't agree.

(Don't think I've ever asked anyone who their employer is...that would be intrusive.)

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Old Apr 25th 2019, 12:01 am
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by Hotscot View Post
I don't agree.

(Don't think I've ever asked anyone who their employer is...that would be intrusive.)
Perhaps not, but you have come very close:
Originally Posted by Els87 View Post
… Its in the tech sector unsurprisingly, with a head office in Bay Area and commuting to Menlo Park for work, ….
Originally Posted by Hotscot View Post
What does the company do if it's not a secret?
Menlo Park is less than 10 sqmiles, so if you know it's a tech company and what the business does, it can't be hard in most case to narrow down the list of possible companies to only two or three given that you know to a very small area where it is located. …. I note that Els8 declined to provide more info, and I don't blame him!
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Old Apr 25th 2019, 8:15 am
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Default Re: Should I sell my UK property while I'm still non-US tax resident?

Originally Posted by guyintheus View Post
Hi tht - Yes it is relevant, but not to my post. I had already mentioned that I did not meet the substantial presence test, and that there was no benefit in electing to be a tax resident. In fact, quite to the contrary. So it wasn't relevant in answering my question. He was purely being nosy! ;-)
ok I still don’t really understand if your are saying the substantial presence test does not apply to you based on your current visa type or if you mean you have not been here enough days for you to meet it.

I guess you will already know if you were selected for H1b now since the lottery is down and notices went out, so your now waiting to see if it’s approved.

The only advise I can give you on the original question is to make sure you understand how the gain is calculated, i.e. that’s ist not just sale price - purchase price in a rental you need to include the depreciation etc, I would do some reading on adjusted basis, because the gain is likely higher than you think for IRS purposes:
https://en.m.wikipedia.org/wiki/Adjusted_basis
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