Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

US Capital Gains on sale of UK house

US Capital Gains on sale of UK house

Old Feb 16th 2011, 2:44 pm
  #1  
Just Joined
Thread Starter
 
Joined: Feb 2009
Posts: 4
u644362 is an unknown quantity at this point
Default US Capital Gains on sale of UK house

I know this topic has been discussed i the past but I couldn't find specifics related to our situation so am hoping someone can help.

We have been in the US for almost 3 years in rented accommodation and now want to sell our UK home to buy here. If we do not complete on a sale by June 13 (the date we left the UK) will we be subject to CGT and if so at what rate, and on what gain? i.e. will it be the gain since purchase or the gain since we left? Also what allowances are there - can we deduct capital expenditure from the gain?
u644362 is offline  
Old Feb 16th 2011, 3:20 pm
  #2  
L2, GC, Surrey, OH, TX!
 
MsElui's Avatar
 
Joined: Aug 2007
Location: Surrey to Dallas (via Ohio)!
Posts: 6,357
MsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond repute
Default Re: US Capital Gains on sale of UK house

have you made a large gain on the property value ? because if there is no large gain - you have less to worry about. We bought our uk home in 2001 and whilst it has gone up in price - the estimated 'gain' isnt huge because of the housing market being so depressed so we decided to leave the house alone for the time being.

also - and i am NOT at all sure about this - but if you are still renting here - can you still class the uk home as main residence?
MsElui is offline  
Old Feb 16th 2011, 3:34 pm
  #3  
Just Joined
Thread Starter
 
Joined: Feb 2009
Posts: 4
u644362 is an unknown quantity at this point
Default Re: US Capital Gains on sale of UK house

Originally Posted by MsElui View Post
have you made a large gain on the property value ? because if there is no large gain - you have less to worry about. We bought our uk home in 2001 and whilst it has gone up in price - the estimated 'gain' isnt huge because of the housing market being so depressed so we decided to leave the house alone for the time being.

also - and i am NOT at all sure about this - but if you are still renting here - can you still class the uk home as main residence?
The gain is not large probably about 30,000 GBP, but we need all the money we can get to be able to afford a home over here.
u644362 is offline  
Old Feb 16th 2011, 5:36 pm
  #4  
BE Enthusiast
 
Joined: Nov 2007
Location: Carson City, NV
Posts: 789
TimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of light
Default Re: US Capital Gains on sale of UK house

Check with a competent CPA, but I think it's the gain since purchase, less repairs and cost of upkeep etc.
TimNiceBut is offline  
Old Feb 16th 2011, 5:37 pm
  #5  
Ping-ponger
 
dunroving's Avatar
 
Joined: Jul 2002
Location: Dreich Alba
Posts: 11,964
dunroving has a reputation beyond reputedunroving has a reputation beyond reputedunroving has a reputation beyond reputedunroving has a reputation beyond reputedunroving has a reputation beyond reputedunroving has a reputation beyond reputedunroving has a reputation beyond reputedunroving has a reputation beyond reputedunroving has a reputation beyond reputedunroving has a reputation beyond reputedunroving has a reputation beyond repute
Default Re: US Capital Gains on sale of UK house

Originally Posted by u644362 View Post
I know this topic has been discussed i the past but I couldn't find specifics related to our situation so am hoping someone can help.

We have been in the US for almost 3 years in rented accommodation and now want to sell our UK home to buy here. If we do not complete on a sale by June 13 (the date we left the UK) will we be subject to CGT and if so at what rate, and on what gain? i.e. will it be the gain since purchase or the gain since we left? Also what allowances are there - can we deduct capital expenditure from the gain?
I just found this while searching for information related to another post:

http://en.wikipedia.org/wiki/Capital..._United_States

- clear as mud.

One difference seems to be that in the UK, you get an allowance of £10k capital gain before you are taxed, whereas there is no "allowance" in the US (as far as I can tell, it's all too confusing for me).

Last edited by dunroving; Feb 16th 2011 at 5:40 pm.
dunroving is offline  
Old Feb 16th 2011, 5:43 pm
  #6  
BE Forum Addict
 
Joined: Jan 2011
Location: Grenada WI
Posts: 2,762
Pistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond repute
Default Re: US Capital Gains on sale of UK house

Originally Posted by u644362 View Post
I know this topic has been discussed i the past but I couldn't find specifics related to our situation so am hoping someone can help.

We have been in the US for almost 3 years in rented accommodation and now want to sell our UK home to buy here. If we do not complete on a sale by June 13 (the date we left the UK) will we be subject to CGT and if so at what rate, and on what gain? i.e. will it be the gain since purchase or the gain since we left? Also what allowances are there - can we deduct capital expenditure from the gain?
Please reiterate!

This is a US tax question or UK tax question, or both, in spite of the heading?
Pistolpete2 is offline  
Old Feb 16th 2011, 6:33 pm
  #7  
Just Joined
Thread Starter
 
Joined: Feb 2009
Posts: 4
u644362 is an unknown quantity at this point
Default Re: US Capital Gains on sale of UK house

Originally Posted by Pistolpete2 View Post
Please reiterate!

This is a US tax question or UK tax question, or both, in spite of the heading?
Sorry- I want to know the position on the US tax liability for CGT
u644362 is offline  
Old Feb 16th 2011, 6:47 pm
  #8  
BE Forum Addict
 
Joined: Jan 2011
Location: Grenada WI
Posts: 2,762
Pistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond repute
Default Re: US Capital Gains on sale of UK house

Originally Posted by u644362 View Post
Sorry- I want to know the position on the US tax liability for CGT
Was this the piece you had seen before on a thread?

http://www.thinkglink.com/article/20...n-in-home-sale
Pistolpete2 is offline  
Old Feb 16th 2011, 6:59 pm
  #9  
Just Joined
Thread Starter
 
Joined: Feb 2009
Posts: 4
u644362 is an unknown quantity at this point
Default Re: US Capital Gains on sale of UK house

Originally Posted by Pistolpete2 View Post
Was this the piece you had seen before on a thread?

http://www.thinkglink.com/article/20...n-in-home-sale
It was yes.
u644362 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.