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Posted

Hi All,

So I sold my house in Northern Ireland and am transfering the money to the USA.

I think I'll use Interchnage who have the best rate today.

Does anyone know the tax implcations of bring money to the USA? Obviously I can't get a bank account in the USA until I get there but Mercedes has one so we can put the money straight in there.

Will there be negative tax implcations in doing this as we aren't married yet or should we wait until I get to the USA and open an account and then transfer the monies that way?

Either way, are there tax implications on this money to the US Govt?

R

i-710 Process

02/23/2011 - Mailed off i-751 to California

02/25/2011 - NOA1

Posted
Either way, are there tax implications on this money to the US Govt?

R

Nope, you won't pay any tax on money you transfer over. :thumbs:

Thanks Muffin,

So are we best to wait until I open the account myself so that Mercedes isn't taxed. Her account is open in her and her step dad's name (so he could be a co-signee while she was in Ireland)?

R

i-710 Process

02/23/2011 - Mailed off i-751 to California

02/25/2011 - NOA1

Filed: Citizen (apr) Country: England
Timeline
Posted
Thanks Muffin,

So are we best to wait until I open the account myself so that Mercedes isn't taxed. Her account is open in her and her step dad's name (so he could be a co-signee while she was in Ireland)?

R

I waited until I had my own account, yes. You should be able to open one fairly quickly once you're over there.

Posted

If you and Mercedes marry this year, you will file 2008 income tax married filing jointly, so the concern of her being taxed is six of one and half a dozen of the other. You as a couple will be taxed, not on all the money but just the interest it earns from the date of deposit. If the Mercedes/Dad account is principally hers, meaning the bank reports earnings to her social security number, then Dad has no tax liability for any earnings your money may accrue. Even if you have a separate bank account, you and M will add up his, hers, theirs for reporting on you tax form.

You, of course, could file married filing separately, but normally the filing jointly is the better deal and you would owe less taxes than if filing separately.

The bank receiving the money will have to report any transactions over $10,000 by law. It's just to have a paper trail of where the money came from and is part of the Patriot Act and dealing with money laundering, providing money to terrorists, etc. They won't tax anything you bring in, but they will make a record of it.

England.gifENGLAND ---

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Posted (edited)
Either way, are there tax implications on this money to the US Govt?

R

Nope, you won't pay any tax on money you transfer over. :thumbs:

If it is from the sale of a house that could in certain circumstance not be true and it could be subject to US capital gains tax on any profit. It is more than likely not taxable however.

Edited by Lansbury

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Posted

It might have UK tax implications, but not US because it would be a UK transaction if completed in the UK before moving the money. I don't know UK tax laws about sale of houses and the gain made in the sale over the price paid.

England.gifENGLAND ---

K-1 Timeline 4 months, 19 days 03-10-08 VSC to 7-29-08 Interview London

10-05-08 Married

AOS Timeline 5 months, 14 days 10-9-08 to 3-23-09 No interview

Removing Conditions Timeline 5 months, 20 days12-27-10 to 06-10-11 No interview

Citizenship Timeline 3 months, 26 days 12-31-11 Dallas to 4-26-12 Interview Houston

05-16-12 Oath ceremony

The journey from Fiancé to US citizenship:

4 years, 2 months, 6 days

243 pages of forms/documents submitted

No RFEs

Posted

The UK laws are that if the prop[erty was your primary residence then you don't have to pay income tax on any net gains made on it.

Thanks for the tips on this guys. The US tax laws are mind boggling for someone used to the UK PAYE tax system. I think we will send $9,999 dollars right now and then transfer the rest over when I get a US bank account.

R

i-710 Process

02/23/2011 - Mailed off i-751 to California

02/25/2011 - NOA1

Filed: Citizen (apr) Country: England
Timeline
Posted (edited)
It might have UK tax implications, but not US because it would be a UK transaction if completed in the UK before moving the money.

Not what our US accountant told us. He was quite concerned that I had made a $258,000 profit on my London house and it didn't appear to have been used to buy a new house in the US.

When he checked into things we didn't have to pay capital gains tax but it was a far from as straight forward as the transaction was in the UK before the money was moved. It had a lot to do with how we purchased a house here.

To follow your suggestion further a UK endowment policy cashing out in the UK paid into a UK bank and then the money moved over wouldn't be subject to US income tax, but it is.

Edited by Lansbury

What to expect at the POE - WIKI entry

IR-1 Timeline IR-1 details in my timeline

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2009-08-21 Applied for US Citizenship

2009-08-28 NOA

2009-09-22 Biometrics appointment

2009-12-01 Interview - Approved

2009-12-02 Oath ceremony - now a US Citizen

Filed: Lift. Cond. (pnd) Country: Wales
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Posted

It blows my mind that anything you do in the UK could possibly be liable for a US tax of some sort.

K1:

(See timeline)

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(See timeline)

ROC:

11-8-10 - ROC file sent

11-10-10 - CSC received file

11-10-10 - NOA1 date

11-15-10 - Check cashed

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Posted
It blows my mind that anything you do in the UK could possibly be liable for a US tax of some sort.

If you are a US Citizen or Permanent Resident you get taxed on worldwide earnings. Of course if you have paid tax on the money in the UK that can normally be offset against any US liability under the US/UK tax Treaty part of which prevents you from being tax twice on money earned in the other country.

As has been said elsewhere US tax law is a minefield and very difficult to understand. Makes you wonder how a bunch of people who kicked us out because they didn't like our tax system or want to pay it could have come up with something so punitive, diverse and complicated. :whistle:

What to expect at the POE - WIKI entry

IR-1 Timeline IR-1 details in my timeline

N-400 Timeline

2009-08-21 Applied for US Citizenship

2009-08-28 NOA

2009-09-22 Biometrics appointment

2009-12-01 Interview - Approved

2009-12-02 Oath ceremony - now a US Citizen

Posted
Makes you wonder how a bunch of people who kicked us out because they didn't like our tax system or want to pay it could have come up with something so punitive, diverse and complicated. :whistle:

Quote of the day, nah, year!!! Brilliant!!!

Thanks Poiteen,

I hope you are doing well!!!

R

i-710 Process

02/23/2011 - Mailed off i-751 to California

02/25/2011 - NOA1

 
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