Tax implications for buying a House in USA
#16
Re: Tax implications for buying a House in USA
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
#17
BE Enthusiast
Joined: Mar 2010
Posts: 478
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.
#18
Account Closed
Joined: Mar 2004
Posts: 2
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.
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.