US tax on sale of UK primary residence?

[ScotsKeith 0]

Having gone through all the US Fiance Visa hoops for almost three years, I am now married and living in the US. I have adjusted my status, have my Green Card (good for two years) and have a social security number.

I went with my wife to her new accountant at the weekend who asked me if I had earned anything in the US since I could work legally, to which I replied "no". I did mention the fact that I had sold my home of 15 years in London. She wasn't very sure of the position regarding US tax but is looking into it - does anyone know?

After my mortgage was clearled I had arounf $450k most of which went into buying a US propert outright.

I only hope that I am not liable for US capital gains and that the same position as the UK (no capital gains on pricipal property) exists with the US authorities.

Please help, as this has come out of the blue at a point where we finally thought all the hurdles had been jumped.

Keith and Amy

PS - I have not worked or earned in the US since I arrived.

[Boiler 45,482]

As you described it, No

[flipside 0]

Be leery of advice of this grave nature being given out on the internet. The safest thing for you to do is consult with a qualified tax professional.

It's my understanding that you have to report all worldwide income, regardless of the source. You will most likely qualify for a tax exemption because it was your personal property of more then 2 years, which is exempt from capitol gains according to US tax law. But this is mixing up 2 different countries tax rules and the best thing for you to do would be to discuss it with your accountant. Getting burned on it later for not reporting it correctly could be quite costly.