# Capital gains on a jointly owned home



## JohnTK (Oct 12, 2012)

Bev... you are a very well informed and helpful person. I have a question regarding capital gains.My US born wife and i are joint owners of our home in the UK - with its mortgage now paid off. it is our expectation that, when we retire, we will downsize - selling the house to realise some capital to add to our retirement pot, and move to a smaller property.

Will the "capital gain" we jointly make on this then attract US tax? And, if so, would a way around this be for the property ownership to be re-assigned wholly in my name (as a british citizen?)


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## Bevdeforges (Nov 16, 2007)

Sorry for the late response to this, but somehow I missed your post and only just caught it today.

Technically speaking, any capital gain on the sale of your home in the UK is subject to tax in the US for your wife's share. HOWEVER, when the time comes, be sure your wife gets the current version of IRS Publication 523 on Selling your Home. (Available on the IRS website.) There is an exclusion of $250,000 on the gain on the sale of a primary residence - and, she would only have to declare one-half the gain in any event. So if the gain is $500,000 or less, it's not a problem.
Cheers,
Bev


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## JohnTK (Oct 12, 2012)

Thanks for that info Bev... very useful.

Dare I ask one more question? We are preparing my wife's tax papers now for a meeting with a US Tax accountant this coming week and also about to file the delinquent FBARs.

My wife has filed her normal tax return every year and will be doing so again soon. *On that basis does she have to send to the FBAR people copies of her tax returns alongside the delinquent FBAR forms - or just the backlog of FBAR forms?*

No one we've talked to seems able to offer ur precise info on this and there does seem to be a lot of disinformation floting around on the web (some of it very alarming). The reason I ask before the meeting is that there is an immense amount of work now necessary to find all the papers for this and if it is unnecessary it would be good to know.

John K


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## Bevdeforges (Nov 16, 2007)

The FBAR forms have always gone to a separate address, apart from the IRS. And, frankly, the FBARs are required, even for those who (for whatever reason) aren't required to file a tax return. So I wouldn't waste any time or effort looking for those tax return copies - at least not for the purpose of any FBAR filings she is planning on doing. 
Cheers,
Bev


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## JohnTK (Oct 12, 2012)

Again thank you


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