Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Will we be (double) taxed on the sale of a UK property (https://www.askmehelpdesk.com/showthread.php?t=199245)

  • Mar 27, 2008, 09:26 AM
    lizalita
    Will we be (double) taxed on the sale of a UK property
    Hello,

    My husband is a UK citizen and legal resident of the US. I am a US citizen. He owns a property that has been rented out for several years in the UK. We would like to sell the UK property (which has increased in value) and use the money to buy a primary residence in the US. Do we have to pay UK taxes on the capital gain? Do we also have to pay US taxes on the capital gain? If so, is there some way to legally avoid these taxes? From what I understand, a 1031 exchange would not work because we are dealing with international property to US property. What about a structured sale annuity?

    Thanks for any insight you can offer,

    lizalita
  • Mar 27, 2008, 09:55 AM
    MukatA
    1. Yes, you will pay taxes in UK.

    2. If this is your Main Home or second home, then you can exclude profit up to $250,000 (up to $500,000) on joint return from the US taxes.
    Read: Your U.S. Tax Return: Profit From the Sale of Your Home

    3. If you can't exclude the gain, you will report the profit on the US tax return. You will also file Form 1116 to claim credit for the taxes paid in UK.
    You will get credit for taxes paid in the foreign country. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

  • All times are GMT -7. The time now is 03:21 AM.