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

US Capital Gains Tax on property sold in UK

US Capital Gains Tax on property sold in UK

Old Feb 20th 2007, 10:37 pm
  #1  
Just Joined
Thread Starter
 
Joined: Feb 2007
Posts: 14
gisela will become famous soon enough
Default 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
gisela is offline  
Old Feb 21st 2007, 12:15 am
  #2  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,727
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default 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.
Bob is offline  
Old Feb 21st 2007, 2:17 am
  #3  
Account Closed
 
Joined: Aug 2004
Posts: 22,220
Rushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really nice
Default Re: US Capital Gains Tax on property sold in UK

Originally Posted by gisela View Post
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 may be wrong but I think it all depends when you got your residency in the US. I think if you sell your UK house after 2 or 3 years (maybe even less) after the date that your residency in the US was issued (its on your GC) then you have to pay US tax on it. Personally I would keep it in the UK and bring it in dribs and drabs and spread it about abit. **** the IRS.
Rushman is offline  
Old Feb 21st 2007, 3:10 pm
  #4  
Just Joined
Thread Starter
 
Joined: Feb 2007
Posts: 14
gisela will become famous soon enough
Default 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
gisela is offline  
Old Feb 21st 2007, 3:35 pm
  #5  
Lt Col (Retd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 47,736
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: US Capital Gains Tax on property sold in UK

Originally Posted by gisela View Post
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
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.
Pulaski is online now  
Old Feb 21st 2007, 3:39 pm
  #6  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,727
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default Re: US Capital Gains Tax on property sold in UK

Originally Posted by Pulaski View Post
US citizens, and I think PRs are liable for US taxes on their worldwide income and realized gains.
PR's are liable
Bob is offline  
Old Feb 21st 2007, 3:56 pm
  #7  
Mr. Grumpy
 
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
BritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond repute
Default Re: US Capital Gains Tax on property sold in UK

Originally Posted by Pulaski View Post
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.
I looked at a 1031 exchange, but unfortunately it actually excludes foreign property....
BritGuyTN is offline  
Old Apr 11th 2007, 12:53 am
  #8  
Just Joined
Thread Starter
 
Joined: Feb 2007
Posts: 14
gisela will become famous soon enough
Default Re: US Capital Gains Tax on property sold in UK

Originally Posted by BritGuyTN View Post
I looked at a 1031 exchange, but unfortunately it actually excludes foreign property....
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
gisela is offline  
Old Apr 11th 2007, 12:57 am
  #9  
Thinking about it
 
BigDavyG's Avatar
 
Joined: Oct 2005
Location: Mid-West
Posts: 9,435
BigDavyG has a reputation beyond reputeBigDavyG has a reputation beyond reputeBigDavyG has a reputation beyond reputeBigDavyG has a reputation beyond reputeBigDavyG has a reputation beyond reputeBigDavyG has a reputation beyond reputeBigDavyG has a reputation beyond reputeBigDavyG has a reputation beyond reputeBigDavyG has a reputation beyond reputeBigDavyG has a reputation beyond reputeBigDavyG has a reputation beyond repute
Default Re: US Capital Gains Tax on property sold in UK

Originally Posted by Rushman View Post
Personally I would keep it in the UK and bring it in dribs and drabs and spread it about abit. **** the IRS.
Amen
BigDavyG is offline  
Old Apr 11th 2007, 2:05 am
  #10  
Lost in BE Cyberspace
 
Boiler's Avatar
 
Joined: Mar 2004
Location: Colorado
Posts: 32,958
Boiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond repute
Default Re: US Capital Gains Tax on property sold in UK

Originally Posted by gisela View Post
22% of the profit (in louisiana).
just in case this is helpful to anyone in a similar situation.
gis
22% of the gain since you became liable to US taxation? Or 22% of everything.

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.
Boiler is offline  
Old Apr 11th 2007, 10:01 am
  #11  
Mr. Grumpy
 
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
BritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond reputeBritGuyTN has a reputation beyond repute
Default Re: US Capital Gains Tax on property sold in UK

Originally Posted by gisela View Post
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
no idea where he's getting 22% from? is this lousiana specific?

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
BritGuyTN is offline  
Old Apr 12th 2007, 9:42 am
  #12  
BE Forum Addict
 
Dan725's Avatar
 
Joined: Aug 2004
Location: Tampa, FL
Posts: 3,315
Dan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond repute
Default 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.
Dan725 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.