When does your UK property stop being your residence
#1
Forum Regular
Thread Starter
Joined: Oct 2009
Posts: 104
When does your UK property stop being your residence
Hi there,
I am trying to calculate for tax reasons when our UK house would have stopped being our residence. I moved over before the family and then the family went back and forth a bit between US and UK.
We then started renting our house out which I would assume is the date we cannot say it was our family residence anymore.
Reason I'm asking is we are close to having to pay US tax on any profits if we sell.
Thanks
I am trying to calculate for tax reasons when our UK house would have stopped being our residence. I moved over before the family and then the family went back and forth a bit between US and UK.
We then started renting our house out which I would assume is the date we cannot say it was our family residence anymore.
Reason I'm asking is we are close to having to pay US tax on any profits if we sell.
Thanks
#2
Re: When does your UK property stop being your residence
I think more information is need. Did you come over on an immigrant visa, if so I would suggest the time starts from when all the family first arrived in the US?
If not an immigrant visa, when going back and forth did you spend more time in the UK or US. Which was your main residence?
If not an immigrant visa, when going back and forth did you spend more time in the UK or US. Which was your main residence?
#3
Re: When does your UK property stop being your residence
Hi there,
I am trying to calculate for tax reasons when our UK house would have stopped being our residence. I moved over before the family and then the family went back and forth a bit between US and UK.
We then started renting our house out which I would assume is the date we cannot say it was our family residence anymore.
Reason I'm asking is we are close to having to pay US tax on any profits if we sell.
Thanks
I am trying to calculate for tax reasons when our UK house would have stopped being our residence. I moved over before the family and then the family went back and forth a bit between US and UK.
We then started renting our house out which I would assume is the date we cannot say it was our family residence anymore.
Reason I'm asking is we are close to having to pay US tax on any profits if we sell.
Thanks
#4
BE Forum Addict
Joined: Mar 2008
Location: Santa Cruz, CA
Posts: 4,913
Re: When does your UK property stop being your residence
Another question.
Precisely who owns the house -are you the sole owner or do you own it jointly with your spouse?
If there is more than one owner then the date on which the property ceased to be the principal residence could be different for each owner.
Precisely who owns the house -are you the sole owner or do you own it jointly with your spouse?
If there is more than one owner then the date on which the property ceased to be the principal residence could be different for each owner.
#5
Re: When does your UK property stop being your residence
I don't think anyone can give you a definite answer including a CPA. The only safe answer is to assume that it the day you entered the US because everything else could possibly be questioned by the IRS.
However I suspect a CPA could say it is possible that when there are two residences and at least one of the married couples considers one of the residence as primary, you could possibly use the date of when she last moved out but then you may possibly be audited by the IRS.
However I suspect a CPA could say it is possible that when there are two residences and at least one of the married couples considers one of the residence as primary, you could possibly use the date of when she last moved out but then you may possibly be audited by the IRS.
#6
Re: When does your UK property stop being your residence
It's worth noting that since this could just as easily arise from a domestic U.S. relocation, it may not be all that unusual. And if you search within the IRS guidance, an answer may already be there.
#7
Re: When does your UK property stop being your residence
Hi there,
I am trying to calculate for tax reasons when our UK house would have stopped being our residence. I moved over before the family and then the family went back and forth a bit between US and UK.
We then started renting our house out which I would assume is the date we cannot say it was our family residence anymore.
Reason I'm asking is we are close to having to pay US tax on any profits if we sell.
Thanks
I am trying to calculate for tax reasons when our UK house would have stopped being our residence. I moved over before the family and then the family went back and forth a bit between US and UK.
We then started renting our house out which I would assume is the date we cannot say it was our family residence anymore.
Reason I'm asking is we are close to having to pay US tax on any profits if we sell.
Thanks
Really it boils down to intent and only you know your intent.
#8
Forum Regular
Joined: Feb 2014
Posts: 106
Re: When does your UK property stop being your residence
Hi,
can I ask why you pay us tax on the profit of selling your uk house?
(that's how I'm reading your thread).
I was thinking today, about how long I will rent out my uk house, because of capital gains tax this end.
can I ask why you pay us tax on the profit of selling your uk house?
(that's how I'm reading your thread).
I was thinking today, about how long I will rent out my uk house, because of capital gains tax this end.
#9
Re: When does your UK property stop being your residence
http://www.irs.gov/publications/p523/ar02.html
#10
Forum Regular
Joined: Feb 2014
Posts: 106
Re: When does your UK property stop being your residence
Because the US has a $500,000 exclusion on capital gains for married filing jointly ($250,000 for married filing separately or single) if the home was your primary residence for at least 2 of the previous 5 years. After that, the home is considered investment property and capital gains apply without an exclusion.
http://www.irs.gov/publications/p523/ar02.html
http://www.irs.gov/publications/p523/ar02.html
#12
Forum Regular
Joined: Feb 2014
Posts: 106
Re: When does your UK property stop being your residence