thinking of making the move back to the USA (after coming back here 6 years ago)!
 

Firstly, Hi everyone, I have been lurking a bit lately and reading through posts. I originally started a thread on here in 2008 and wanting to move back to the states after being back in england for 4 months!:rofl: was homesick for usa even though I'm a brit! anywayyyyyyy ...
I am a dual us/uk citizen born in England. Married a US citizen in 2000 and was living there until 2008 when we decided to move our family to England. Well we are seriously thinking about going back now. Hubby is from NJ which is where we lived together over there. If we return we want to go just outside of Atlanta GA because his mother has retired there and he has a brother who lives there also. The property is so much cheaper there not to mention the property taxes! I have been there once years ago but not when his mum lived there.

My dad recently sold a secondary property here that he was renting out and is considering buying a house there for us to live in, either to invest or let us rent to own from him. Does anyone know if it would be beneficial to have him buy it by opening a bank account there and getting a lawyer to write up a rent to own agreement or would it be better for him to give me the money to buy it? I guess im asking if it is easier or cheaper for either him as a brit living abroad or me as a us citizen? any ideas?

my children are 12, 10 and 2. the oldest in year 8 the second in year 5 and the two year old home with me. Does anyone have an opinion as to whether it would be better to get my oldest into the final year of middle school (8th grade) next year or would it be easier to go straight from here to high school next year?

Thanks
Louise

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

Most likely easier for YOU to buy the house, since I assume you have some US credit history. Might make getting a mortgage easier, and at a lower rate than your dad could get.

Rene

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

oh well, he will buy with cash, no need for a mortgage :) thanks for the reply

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

That's great that he will be able to do that for you. However, it might be beneficial to you and your husband if you could buy a house with a mortgage, using some (or all) of his money as a down payment. Certainly from a credit stand point it's a good idea and of course once you live here, having mortgage interest to claim on taxes is a good idea, rather than nothing with renting. Just something to think about.

As far as the children, I think moving them over as early as possible would be beneficial to them. Moving as they get older can become complicated for all kinds of reasons.

Good luck!

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

Thanks that's worth considering.

As far as the kids I just though it might be easier to start at high school when it's new for all the freshman. Where as if she went this year and started the final year of middle school it may be harder to fit in?

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

I think a transition of changing schools is probably always rough at that age. But I think the sooner you can get her here, the better for her in finding friends.

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

I think it's easier to start a new school as a newcomer, everyone knows you are new, and from the experiences my daughter has been through and seen, the kids make a bit of a fuss and are all interested in someone new. They seem to make sure they have someone to go to lunch with, and know their way to class...

Starting high school new, at the same time as everyone else, means they are likely to get lost in the mix. Everyone will just assume that your daughter knows someone, and she may be left to feel quite isolated.

Also, the age ranges might be different in the state you are moving to, but my daughter turns 12 in March this year, and is with her age range in the first year of Middle School (Year 6) and they do 3 years of Middle School in our area.

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

That is definitely true, especially having a british accent may be a novelty for the other kids. I know when we moved here she was almost 7 and all the kids loved her american accent!

yes she is turning 13 this may and is year 8 here which is 7th grade there i think, that would mean she would start 8th grade this September (or august as they do in GA) then next august (2015) she would start 9th grade (high school).

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

Normally you'd rather it not be property but instead cash. Whether he gives cash or property, there is no gift tax on the receiver of the gift and the US can't tax the giver if he/she is not a USC or LPR.

However if he gives property, then his cost basis becomes your cost basis. In your case that probably won't make much difference since the gift will occur shortly after the property is purchased but for others, there could be a significant rise in the value of the property by the time the gift is made making the receiver of the gift's cost basis low. Therefore when it is sold, a low cost basis has to be used to calculate taxes owed.

Also giving cash makes everything so much easier since you don't have to use his paperwork for the cost basis of the gift but instead the cost basis is what you paid for the property plus purchasing expenses. Although it is the same, it may possibly cause confusion with his name on all the paperwork. Also you may get hit with additional fees such as title and transfer fees if he transfers the property.

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

Thanks Michael.
Is it correct that if I receive a gift either cash or house I will have to pay inheritance tax should my father pass away within 7 years if giving it? Is it the same if I am in the USA when I receive it?

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

As far as the US government is concerned, the IRS doesn't care.

However, UK law is more complicated and I believe if the donor is deceased within 7 years of a gift, the gift then becomes part of the estate which can be taxed in the UK if the total estate is greater than £325,000 (the exclusion). Therefore it is unlikely that your gift will be taxed (if under £325,000) if the donor dies within 7 years but will be counted towards the exclusion and everything above the exclusion will be taxed at 40%.

Someone more familiar with UK law will have to clarify.

http://www.hmrc.gov.uk/inheritancetax/intro/basics.htm

As a side note, the US exclusion for US citizens is currently $5.25 million before estate or gift taxes are levied and gifts above $14,000 per person per year must be reported to the IRS by the donor to be used against the exclusion upon death. Also there is an unlimited exclusion on estates or gifts to US citizen spouses.

Finally there is a difference in terminology between the US and UK. In the UK, estate and inheritance taxes have the same meaning. In the US, estate tax refers to the donor and inheritance tax refers to the receiver and at the federal level, there isn't any inheritance tax. Georgia has neither an estate or an inheritance tax.

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

OK thanks. Good to know.

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

Coral -- interesting thread. I sent you a PM, as I saw a lot of similarities between our situations.

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

Dodd Frank suggests this is not the case.

Re: thinking of making the move back to the USA (after coming back here 6 years ago)!
 

thanks for all the replies, transatlantic_chap i private messaged you back, did you get it?