US Capital Gains Tax on property sold in UK
#1
Just Joined
Thread Starter
Joined: Feb 2007
Posts: 14
US Capital Gains Tax on property sold in UK
hi all,
i live in the us and am selling my flat in london. it seems that i am exempt of CGT in the UK (left before 1998) but what about the US? has anyone experience with this? would i be liable to pay the CGT here? or what if i just left the money in the UK and brought it over in dribs and drabs?
thanks for any input from THEMS WHAT KNOW!
gisela
i live in the us and am selling my flat in london. it seems that i am exempt of CGT in the UK (left before 1998) but what about the US? has anyone experience with this? would i be liable to pay the CGT here? or what if i just left the money in the UK and brought it over in dribs and drabs?
thanks for any input from THEMS WHAT KNOW!
gisela
#2
Re: US Capital Gains Tax on property sold in UK
Welcome to BE
Do a search, the question has come up quite a few times...
And even if you did bring the money over in dribs and drabs, you'd still need to declare any assets over $10K to the IRS.
Do a search, the question has come up quite a few times...
And even if you did bring the money over in dribs and drabs, you'd still need to declare any assets over $10K to the IRS.
#3
Account Closed
Joined: Aug 2004
Posts: 22,220
Re: US Capital Gains Tax on property sold in UK
hi all,
i live in the us and am selling my flat in london. it seems that i am exempt of CGT in the UK (left before 1998) but what about the US? has anyone experience with this? would i be liable to pay the CGT here? or what if i just left the money in the UK and brought it over in dribs and drabs?
thanks for any input from THEMS WHAT KNOW!
gisela
i live in the us and am selling my flat in london. it seems that i am exempt of CGT in the UK (left before 1998) but what about the US? has anyone experience with this? would i be liable to pay the CGT here? or what if i just left the money in the UK and brought it over in dribs and drabs?
thanks for any input from THEMS WHAT KNOW!
gisela
#4
Just Joined
Thread Starter
Joined: Feb 2007
Posts: 14
Re: US Capital Gains Tax on property sold in UK
hi sir, and bob,
thanks for your replies.
i got US residency in 91, so am exempt from UK tax. but here -- my accountant doesn't know about europe, so i was hoping to hear from someone who's been there, done that..
gisela
thanks for your replies.
i got US residency in 91, so am exempt from UK tax. but here -- my accountant doesn't know about europe, so i was hoping to hear from someone who's been there, done that..
gisela
#5
Re: US Capital Gains Tax on property sold in UK
You have been gone too long to benefit from the $250,000 ($500,000 if married filing jointly) exemption on your personal residence (requires two of the past five years living in it), but assuming that you have been renting it you may be able to roll the proceeds (NOT just the gain) into a qualifying asset in the US, e.g. rental property(s) in the US, to avoid the tax liability. If you want to do this you should consult a tax accountant experienced in such matters.
#7
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: US Capital Gains Tax on property sold in UK
US citizens, and I think PRs are liable for US taxes on their worldwide income and realized gains.
You have been gone too long to benefit from the $250,000 ($500,000 if married filing jointly) exemption on your personal residence (requires two of the past five years living in it), but assuming that you have been renting it you may be able to roll the proceeds (NOT just the gain) into a qualifying asset in the US, e.g. rental property(s) in the US, to avoid the tax liability. If you want to do this you should consult a tax accountant experienced in such matters.
You have been gone too long to benefit from the $250,000 ($500,000 if married filing jointly) exemption on your personal residence (requires two of the past five years living in it), but assuming that you have been renting it you may be able to roll the proceeds (NOT just the gain) into a qualifying asset in the US, e.g. rental property(s) in the US, to avoid the tax liability. If you want to do this you should consult a tax accountant experienced in such matters.
#8
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Joined: Feb 2007
Posts: 14
Re: US Capital Gains Tax on property sold in UK
just in case this is helpful to anyone in a similar situation.
gis
#10
Account Closed
Joined: Mar 2004
Posts: 2
Re: US Capital Gains Tax on property sold in UK
There could be a whole variety of reasons for bringing in money to the US that have no tax issues, Inheritance for example.
Never heard of anyone being quizzed as to the source of their funds.
#11
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: US Capital Gains Tax on property sold in UK
Fresh information on the subject: i spoke to an accountant and she said that i should get a divorce first (as i was getting it anyway), and then my income would be hugely reduced. the capital gains tax is in part based on your income, and of couirse the profit you are making on your property. she told me that i would have to pay 22% of the profit (in louisiana).
just in case this is helpful to anyone in a similar situation.
gis
just in case this is helpful to anyone in a similar situation.
gis
As far as I was aware, capital gains reliased within a year of ownership are taxed at 25%, after a year and a day its 15%, which is still an arse, but not too horrific
#12
Re: US Capital Gains Tax on property sold in UK
Personally I'd just sell the house in the UK using a UK estate agent etc then transfer the proceeds bank to bank. It will get declared to the IRS; so what? Unless they know its from the sale of property, they won't tax you on it.