Should I sell my UK property while I'm still non-US tax resident?
Apr 28th 2019, 2:53 pm
#46
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Should I sell my UK property while I'm still non-US tax resident?
Apr 28th 2019, 3:05 pm
#47
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Joined: Aug 2013
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Posts: 4,131
Re: Should I sell my UK property while I'm still non-US tax resident?
Every year since I have been back in the UK I have US capital gains that are taxed by HMRC and I claim those taxes back on form 1116, marking it as “Resourced by Treaty” and listing my US CGs and US pensions.
Apr 28th 2019, 6:14 pm
#48
Lost in BE Cyberspace
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,425
Re: Should I sell my UK property while I'm still non-US tax resident?
Looks good to apply the deductions as long as the following do not apply
https://www.irs.gov/instructions/i11...40050395053392
This is a good recent article https://www.thebalance.com/us-taxes-...n-home-3973966
- Foreign taxes withheld on income or gain (other than dividends) from property if you haven't held the property for at least 16 days within the 31-day period that begins 15 days before the date on which the right to receive the payment arises. See section 901(l) or Pub. 514.
- Foreign taxes withheld on income or gain (other than dividends) from property to the extent you have to make related payments on positions in substantially similar or related property
https://www.irs.gov/instructions/i11...40050395053392
This is a good recent article https://www.thebalance.com/us-taxes-...n-home-3973966
Last edited by mrken30; Apr 28th 2019 at 6:40 pm.
Apr 30th 2019, 2:19 am
#49
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Joined: Feb 2015
Location: New Jersey, USA
Posts: 566
Re: Should I sell my UK property while I'm still non-US tax resident?
To your original point on the fairness of limiting the state tax deduction, I would make the counter-argument, that you paying excessive local tax to feather your own nest (superior services in your state) then being permitted to reduce your contribution to the federal coffers is also unfair. You benefit, presumably, from those superior services, and you are permitted to reduce your share of federal taxes, and everyone else has to pick up a share of your shortfall! The overall net effect of this is that taxpayers in states with more modest state government expenditure are paying additional federal taxes to subsidize profligate spending by your state! 
Apr 30th 2019, 3:26 am
#50
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
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Re: Should I sell my UK property while I'm still non-US tax resident?
I look at it this way. Many red states provide minimal services at the state level and rely on "welfare" from the federal government to make up the difference. And the bill for that welfare is paid by taxpayers in blue states, where state governments tax higher and provide more services. With the SALT limitation, that shift of federal income from blue to red states becomes even more pronounced than the numbers you give. I really don't see how you can defend it other than to say "because we can". Also, the SALT limitation was at least partially responsible for the Democrats winning the House back: Republicans were wiped out in most parts of several states with higher state income taxes.
May 28th 2019, 3:46 pm
#51
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Joined: Apr 2019
Posts: 16
Re: Should I sell my UK property while I'm still non-US tax resident?
Does anyone know of any tax advisor recommendations who are specialists in both US and UK tax? A firm who deals with UK-US expats? I will do a regular search but just wondered if anyone had used anyone previously and came recommended?
Apologies if this type of request isn't allowed on the board..!
Apologies if this type of request isn't allowed on the board..!
Jun 2nd 2019, 1:35 am
#52
L2, GC, Surrey, OH, TX!
Joined: Aug 2007
Location: Surrey to Dallas (via Ohio)!
Posts: 6,363
Re: Should I sell my UK property while I'm still non-US tax resident?
yep - we got dinged very badly a few years ago. was infuriating as when we bought we had no idea we would be moving to the states years later but we still had to pay the gain.
