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Tax question; sale of residence

Tax question; sale of residence

Old Mar 26th 2007, 11:57 pm
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Default Tax question; sale of residence

Does anyone sold their principal house in UK or Overseas?

Do you need to report the sale even if the capital gain is under the exclusion amount? I have read that if its under exclusion its not reportable. If I choose to report it I have to produce tons of documents. My accountant insist on reporting it but did not ask me to produce the said documents for the IRS.
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Old Mar 27th 2007, 12:04 am
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Default Re: Tax question; sale of residence

Originally Posted by abboy View Post
*Has* anyone sold their principal house in UK or Overseas?

Do you need to report the sale even if the capital gain is under the exclusion amount?
No, I don't believe so *disclaimer - I am not a tax advisor*

My tax accountant advised that since the capital gain on sale was less than $250k, it was not required to report it, or even to mention it.

However, I suppose each tax advisor gives their best interpretation of the rules.

C
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Old Mar 27th 2007, 12:06 am
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Default Re: Tax question; sale of residence

Originally Posted by texas_ranger View Post
No, I don't believe so *disclaimer - I am not a tax advisor*

My tax accountant advised that since the capital gain on sale was less than $250k, it was not required to report it, or even to mention it.

However, I suppose each tax advisor gives their best interpretation of the rules.

C
Think that depends how long you've lived in the US.
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Old Mar 27th 2007, 12:49 am
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Default Re: Tax question; sale of residence

Originally Posted by Jerseygirl View Post
Think that depends how long you've lived in the US.
Its my first tax return.
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Old Mar 27th 2007, 12:50 am
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Default Re: Tax question; sale of residence

Originally Posted by abboy View Post
Its my first tax return.
Find a new accountant...
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Old Mar 27th 2007, 12:52 am
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Default Re: Tax question; sale of residence

Originally Posted by abboy View Post
Its my first tax return.
How long have you lived in the US?
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Old Mar 27th 2007, 1:08 am
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Default Re: Tax question; sale of residence

Originally Posted by Elvira View Post
Find a new accountant...
and not HR block...
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Old Mar 27th 2007, 1:10 am
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Default Re: Tax question; sale of residence

apart from how long you've been in the US, it depends on how many years you've lived in the gaff....
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Old Mar 27th 2007, 1:15 am
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Default Re: Tax question; sale of residence

Originally Posted by Bob View Post
and not HR block...
I did say 'accountant', did I not, Roberto...
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Old Mar 27th 2007, 1:28 am
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Default Re: Tax question; sale of residence

You're all talking crap about using an accountant again, as always happens when a tax question comes up.

The IRS has a really good website. It's full of everything you need to know. Here, for example, are the rules about excluding the capital gains tax from sale of your principal residence:

IRS Issues Home Sale Exclusion Rules

Boils down to this: you can exclude up to $250k ($500k for married filing jointly) of capital gains from sale of your principal residence. To qualify as your principal residence, you must have lived there for 2 of the 5 years prior to the sale.

Oh yes, and I'm not a tax professional, yada, yada, get a good CPA, yada, opinions are solely my own etc., etc., etc.
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Old Mar 27th 2007, 2:33 am
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Default Re: Tax question; sale of residence

My accountant is KPMG, They say they have taken care of reporting everything necessary in the tax return.
I have lived in the house all the five years I owned it and I am only in US for a year.
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Old Mar 27th 2007, 4:11 am
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Default Re: Tax question; sale of residence

Originally Posted by abboy View Post
My accountant is KPMG, They say they have taken care of reporting everything necessary in the tax return.
I have lived in the house all the five years I owned it and I am only in US for a year.
Then what was your question for?
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Old Mar 27th 2007, 5:46 am
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Default Re: Tax question; sale of residence

Originally Posted by dbj1000 View Post
Then what was your question for?
My question is based on IRS PUB..,what is the necessary of reporting it when you dont need to report it. Even the accountant said so does not mean they are correct all the time unless they explain to me the reason( still waiting). I have to sign the return and be liable for everything on it, not my accountant.
Even IRS people in the helpline ,cannot give me the correct answer. The other day, I called to ask where to file my return, I was told in CA, but I said according to your site its OH, then the person said , he did not even know they have office in OH and went to check it and realized that I am correct. He even thank me for giving him the information
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Old Mar 27th 2007, 3:38 pm
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Default Re: Tax question; sale of residence

dbj is on the money regarding the guidelines from the IRS.. 2 of the previous 5 years yada...zzzzzzzz read there site etc.

- don't forget the state level too. Every state is different for cap gains too. However, there is one crucial thing that people overlook; if you haven't sold your house yet and all this is going into the equation per se double check withholdings, if applicable, from the closing. For example, here in CO if you are moving out of state, there can be a 3% withholdings from the settlement to ensure taxes etc have been paid. If you are moving overseas, they can withhold 10% of the settlement! Basically its to ensure you're not skipping out on anything. Often people either forget or are unaware of it and have a nasty surprise at closing.

as everyone says and disclaims... talk to your tax advisor etc.
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Old Mar 27th 2007, 4:44 pm
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Default Re: Tax question; sale of residence

Originally Posted by abboy View Post
My accountant is KPMG, They say they have taken care of reporting everything necessary in the tax return.
I have lived in the house all the five years I owned it and I am only in US for a year.
you would take advice off this forum rather than KPMG - fair enough - I assume this is part of an expat contract?

If you are only here for a year why bother selling, could be a mistake getting off the property ladder in the UK and might be more complicated than its worth tax wise? It could also take a couple of months
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