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Taxation and savings

Taxation and savings

Old Feb 7th 2011, 10:57 pm
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Default Taxation and savings

Whilst we await the outcome of the I-130, I am trying to sort out my assets..My Ex has agreed to buy me out of my share of the house we joint own and should be completed mid march and I am estimating the sum from the house will be around $40,000 plus a few grand from item that will be sold off for one reason or another and have savings so I am estimating around $45,000.

As we are doing the spousal visa am I liable for taxation in the U.S should it be approved or is there a ceiling that I can transfer once visa in hand?
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Old Feb 7th 2011, 11:04 pm
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Default Re: Taxation and savings

Wolfy, I moved your thread to the general USA forum, where more tax-related questions are asked and answered.

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Old Feb 7th 2011, 11:25 pm
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Default Re: Taxation and savings

When you move over, you can move as much of your assets as you like. As long as it's yours and tax has been paid where appropriate in the UK there isn't anything due when you transfer it over.

My wife a USC lived in the UK for 10 years and filed her US taxes each year, with nothing to pay. When we moved over we transferred a sum a lot more than you propose and it was all previously declared income or the cash from our house sale. With the house sale cash we paid for our house in the US. There was no tax to pay on any of it.

If you have a chunk of cash from a house sale and it isn't going into property in the US you might want to speak to a tax bod over here to check the tax position on that. It is similar to the UK but expert advice might not go amiss.
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Old Feb 8th 2011, 2:44 pm
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Default Re: Taxation and savings

Just to chip in...Once you are in USA and filling out tax returns etc, don't overlook FBAR requirements if you still have financial assets in UK. Google it and search for threads on here. Its a simple form that can be a serious problem if neglected.
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Old Feb 8th 2011, 6:07 pm
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Default Re: Taxation and savings

Does anyone know if there's any special reporting required for the situation the OP describes? We expect to net around $15k from the sale of our house, which shouldn't be liable to UK or US (arising from OH's USC status) CGT as it's from the sale of our principal residence.

I know we'll have to file an FBAR by June next year for the brief amount of time it will sit in our UK bank account, but is there any specific paperwork we need to file with the IRS when we transfer the money over to the US?
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Old Feb 8th 2011, 6:32 pm
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Default Re: Taxation and savings

rpjs, is there something about your situtation that lansbury's answer does not cover?

There is no tax due for simply transfering your money between countries.
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Old Feb 8th 2011, 6:35 pm
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Default Re: Taxation and savings

Originally Posted by rpjs View Post
but is there any specific paperwork we need to file with the IRS when we transfer the money over to the US?
If you transfer it between banks, your bank here will do it for you.

If you bring it over in cash, or a bankers draft etc you declare at customs.
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Old Feb 8th 2011, 6:40 pm
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Default Re: Taxation and savings

Originally Posted by lansbury View Post
If you transfer it between banks, your bank here will do it for you.

If you bring it over in cash, or a bankers draft etc you declare at customs.
Clarification; that reporting does not go to the IRS (the tax authority) but to Treasury visa US Customs.
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Old Feb 8th 2011, 6:41 pm
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Default Re: Taxation and savings

Originally Posted by meauxna View Post
rpjs, is there something about your situtation that lansbury's answer does not cover?

There is no tax due for simply transfering your money between countries.
Nope, don't think so. Like I said, I'm pretty sure we're exempt from capital gains tax on either side, but I was wondering if we need to file anything specific to assert that. From what people have said here it appears not.
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Old Feb 8th 2011, 7:05 pm
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Default Re: Taxation and savings

Originally Posted by meauxna View Post
Clarification; that reporting does not go to the IRS (the tax authority) but to Treasury visa US Customs.
Yes sorry, I meant the bank will do the necessary reporting.
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