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Tax implications for buying a House in USA

Tax implications for buying a House in USA

Old Jun 30th 2010, 4:12 am
  #16  
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Default Re: Tax implications for buying a House in USA

Originally Posted by Jscl View Post
The base value for any capital gains is always the value of the property at purchase/acquisition.

Yep, Giantaxe, I misread the post. When you convert to rental is irrelevant to capital gains on sale.
Not the value when you became tax resident in the US?

For example - bought house in the UK for $400k and was your primary residence. Moved to US 2 years later and house was valued at $500k. Sold house a few years later for $550k.

Would US capital gains tax be based on gain of $150k or $50k. I would think you only report $50k gain
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Old Jun 30th 2010, 8:40 pm
  #17  
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Default Re: Tax implications for buying a House in USA

I think that sort of advice is worth paying for, to get correct, as usually $100,000s of dollars are involved. Nothing I've come across suggests the tax basis in the US is anything other than the purchase price, but you may get to exclude some of the income, and I'm really not confident enough to say what would happen if the property is overseas. I think tax advice from a professional on this would really pay for itself.
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Old Jul 1st 2010, 12:55 am
  #18  
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Default Re: Tax implications for buying a House in USA

Originally Posted by Jscl View Post
I think that sort of advice is worth paying for, to get correct, as usually $100,000s of dollars are involved. Nothing I've come across suggests the tax basis in the US is anything other than the purchase price, but you may get to exclude some of the income, and I'm really not confident enough to say what would happen if the property is overseas. I think tax advice from a professional on this would really pay for itself.
It has come up a few time, there obviously is an answer but I have never seen it.

I think in practice it does not get declared to IRS, if memory serves me correct it would have to be something you declare on the basis you do owe tax. Out of country out of mind.
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