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TAX QUESTION

TAX QUESTION

Old Mar 7th 2014, 8:36 pm
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Default TAX QUESTION

Hi
Just sold my house in UK and want to bring the monies over to US, but getting confusing answers from accountants whether that money is US taxed, when I bring it over,some say yes, some say no! Does anyone know the correct answer please?
thanks
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Old Mar 7th 2014, 8:39 pm
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Default Re: TAX QUESTION

You haven't mentioned what your status is?
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Old Mar 7th 2014, 8:39 pm
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Default Re: TAX QUESTION

green card holder
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Old Mar 7th 2014, 9:48 pm
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Default Re: TAX QUESTION

Originally Posted by Kabrav View Post
green card holder
If you were a green card holder (US Permanent Resident) at the time your house was sold, then you need to claim capital gain on your US tax return, yes. That is, if capital gain applies to you. Did you make a profit on the sale of the house?

Rene
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Old Mar 7th 2014, 11:23 pm
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Default Re: TAX QUESTION

I was a green card holder at time of sale. I did make a profit. How do I know if capital gains applies to me? thanks
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Old Mar 7th 2014, 11:34 pm
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Default Re: TAX QUESTION

Originally Posted by Kabrav View Post
I was a green card holder at time of sale. I did make a profit. How do I know if capital gains applies to me? thanks
Start at http://www.irs.gov
In particular publication 17, Part Three.
http://www.irs.gov/publications/p17/index.html

In general, you should assume it's taxable unless you find a basis to exclude it. Normally, you have to convert both your sale and purchase prices to U.S. dollars at the time of each transaction - this may increase (or decrease) your U.S. profit. There may be some exclusion available if it was your main home less than 3 years ago. Also, there may also be capital gains tax to pay in the U.K.
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Old Mar 9th 2014, 1:02 pm
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Default Re: TAX QUESTION

I'm surprised that any qualified US accountant would not know the answer to this.

A green card holder will be taxed on their world wide income and gains. You just apply the usual IRS rules for tax on any gains from sale of real property.
It's unlikely that there will be any UK CGT to pay as you are not a UK resident.....double check on that though. FYI from 2015 the UK will tax capital gains
on sale of property owned by non-residents.
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Old Mar 9th 2014, 6:21 pm
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Default Re: TAX QUESTION

yes, 2 accountants told me different things.
Thanks for advice
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Old Mar 9th 2014, 6:35 pm
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Default Re: TAX QUESTION

Originally Posted by Kabrav View Post
yes, 2 accountants told me different things.
Really? Was this advice in writing, or was it just a general phone call?
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