# British moving to US, want to sell UK House next year.



## Yeltsin (Jul 2, 2011)

Hi, I hope somone out there can advice on my US tax implication. 
I'm british and have been living and working in switzerland for over nine years so considered as a Non-Resident tax wise in the UK. My company in a months time will transfer me to the amercan office for three years where I will have a L1B visa and be a Resident-Alien.
Just under five years ago I bought a house in the UK as I thought I was moving back, but all changed at the 11th hour, so I never moved in, so have always let it out. I want to sell the house next year as all its done is sap cash from me, things start need doing again and the tenants contracts come to an end.
I've been told that when I sell it next year that I will get a bill from the american tax-man even though I'm not liable for tax in the uk and I will have been in the US five minutes. Can someone please confirm if this is true, and what is the rate, and can I offset anything. I hope to get between GBP80,000 and GBP100,000 more than what I paid for it, but I did do about GBP40,000 of improvements, though I dont have reciepts for anywhere near that amount.
I'd be greatful for any comments, specially as my situation includes a third country switzerland, which is considered my home residence, so I cant say that my UK home was my personal residence. If anyone has had a similar experience or is a US tax expert, please dont be shy.
Thanks


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## Fatbrit (May 8, 2008)

Not an expert by any means....so take anything I say with a pinch of salt.

I have a feeling that the fact you will be on a non-immigrant visa may allow you to isolate the IRS from your financial happenings outside the US.

This would certainly not be the case if you were a permenant resident.


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## twostep (Apr 3, 2008)

Time for a cpa:>)


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## Bevdeforges (Nov 16, 2007)

The easiest solution is to sell the house before you arrive in the US.

Your US tax obligation starts on entry to the US on a visa that gives you residence in the US. Immigrant vs. non-immigrant status really doesn't count as far as the IRS is concerned. Because you can't claim the house as your personal residence, you'll have to declare your rental income from the property and on sale it will be treated as "investment property."

Is your employer offering you any sort of tax assistance with your relocation? You really should consult a tax adviser on this, as there are lots of details that need to be considered with a property like this if you aren't going to be able to sell it until after you take up residence in the US.
Cheers,
Bev


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## Fatbrit (May 8, 2008)

Bevdeforges said:


> Your US tax obligation starts on entry to the US on a visa that gives you residence in the US. Immigrant vs. non-immigrant status really doesn't count as far as the IRS is concerned. Because you can't claim the house as your personal residence, you'll have to declare your rental income from the property and on sale it will be treated as "investment property."




I thought non-immigrant visa holders did not have to pay taxes on earnings made outside of the United States.


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## Yeltsin (Jul 2, 2011)

No way that I can sell in the next 6 weeks, plus I've got tenants in there. So I'm well and truely screwed by the sound of it. What money I will make from it, which is my pension, I have to hand over to the American tax man... :-( 
I'm going to try and talk to some american tax accountants here, but I dont hold out much hope. Thanks all for your contribution


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## Bevdeforges (Nov 16, 2007)

Fatbrit said:


> I thought non-immigrant visa holders did not have to pay taxes on earnings made outside of the United States.


It depends, but AFAIK (and I could be wrong here - have to check with the IRS publications and I'm not at home now, so checking is a bit awkward) but it's not as simple as "immigrant visa, yes, non-immigrant visa, no." We are talking taxes, here, after all.

It's related to that wacko test of how many days you've resided in the US over the prior x years and how long you expect to stay.
Cheers,
Bev


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## 88marco (Jun 11, 2011)

Hello, 

If you are moving abroad because of work, a good idea would be to negotiate with your company that they pay for a few months in a B&B or hotel so that you can search for accommodation locally. As letting markets vary a lot and visiting local agents and properties is really important; being on site for a few weeks would be ideal. If you need to also sell your house then this can be quite tricky as finding quick buyers is rather difficult in the current market and you may end up forced to sell your house quickly to avoid delay your departure.

Marc


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