# Capital Gains Tax in year of Renunciation from US



## Jenisnolongerayank (Aug 12, 2013)

Hello, I am a UK citizen and renounced my US citizenship in May 2013. The instructions for form 8854 are mind boggling, and it appears that there is a new draft form for 2013.

My question is this, if I were to sell my UK principal residence before the end of 2013, am I subject to US capital gains tax on this? I am not a "Covered Expatriate" meaning I am below all thresholds for past 5 years and global wealth.

Thanks very much for any help you can give!


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## quincy (Oct 25, 2011)

When you fill in the 8854, you calculate the capital gain on all of your assets, including your house, as if you sold everything on the day before you renounced. After you have renounced, you are no longer a citizen and the US has no interest in your property transactions in the UK. So, the short answer is, "no".

Quincy


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## Jenisnolongerayank (Aug 12, 2013)

Thanks Quincy, that's what I thought, but the instructions are so vague I wanted to be sure.


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## quincy (Oct 25, 2011)

Your welcome. I filled out 8854 myself last year. I feel your pain!
Quincy


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## amills (May 23, 2013)

Jenisnolongerayank said:


> Hello, I am a UK citizen and renounced my US citizenship in May 2013. The instructions for form 8854 are mind boggling, and it appears that there is a new draft form for 2013.
> 
> My question is this, if I were to sell my UK principal residence before the end of 2013, am I subject to US capital gains tax on this? I am not a "Covered Expatriate" meaning I am below all thresholds for past 5 years and global wealth.
> 
> Thanks very much for any help you can give!


I'm in the same situation: renounced in early October this year, not a "covered expatriate," and want to sell my flat in the UK. But I wonder if I should wait to receive the Certificate of Loss of Nationality before I sell. 

I know that one is considered to have renounced citizenship from the date of ones appointment at the Embassy but what if ones paperwork is lost and one never receives the CLN!


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