# Selling house in UK after relocation to USA



## Billius (Aug 17, 2010)

Hi, I'm relocating to San Diego at the end of September with my wife and two young boys.

I had hoped to complete the sale of my property the day before we left - but it now seems the buyer can't make this date - instead will complete 1 week after we have gone.

I am trying to confirm whether there is any tax implications because of this?

Simplistically the gain on the house <$500,000 so as it is jointly owned I don't think I need to declare this on any US Tax form. right?

Also I'm not sure what tax status I'd be anyway as I will be a Non-Resident Alien until next tax year right? (maybe that's a red-herring)

Thanks,

Bill

p.s. probably a lot of other questions coming soon


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## Fatbrit (May 8, 2008)

I'm not going to hazard my guess to your question since tax matters are well beyond my feeble mind......but anyone who does might find it useful to know whether you will be entering on an immigrant or non-immigrant visa.


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## Billius (Aug 17, 2010)

Fatbrit said:


> I'm not going to hazard my guess to your question since tax matters are well beyond my feeble mind......but anyone who does might find it useful to know whether you will be entering on an immigrant or non-immigrant visa.


Coming over on an H-1B Non-Immigrant Visa


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## twostep (Apr 3, 2008)

Bev will be able to pinpoint it.
You have to file US taxes as of the date of your employment. What will your status be from September through December? Windfalls, capital gains have to be reported. No, there is no double taxation, mainly a matter of reporting.


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## Fatbrit (May 8, 2008)

Billius said:


> Coming over on an H-1B Non-Immigrant Visa


Hopefully, Bevdeforges will chime in.

My own guess is that you can keep foreign stuff and American stuff separate.


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## Bevdeforges (Nov 16, 2007)

Ta-da! here I am - and I'm touched at the faith you all show in me in the tax realm.

The sale of your house in the UK shouldn't have any tax implications for you, but you may very well have to report the sale on your US tax returns. Basically, you report the sale, figure the gain and then you exclude the gain, based on it falling below the taxable amount.

Your tax liability starts basically on the date of entry into the US to establish residence, as far as I know. The fact that the sale is completed 5 days after you leave the UK and possibly before you start work means that you could probably get away with not reporting it - but it's a good idea to make an effort to do everything by the book, especially for the first return you file.
Cheers,
Bev


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## twostep (Apr 3, 2008)

Thank you Bev.
Just FYI - it bit my mother dearly in the checkbook when she did not report capital gains after a 33% withholding in the US. Four years and 50 weeks later she was confronted with a deadline and backfiling and adjustments/penalties of four years. The 33% got lost in the shuffle. Reporting is the name of the game.


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