Taxes, Money & Stuff

[cheeky^Wolf 0]

OK here's my situation.

When I had my interview and came over last week, I had savings in excess of $80,000 which I was going to leave in my accounts in the UK and use towards us buying another property over here eventually.

Since being here, my dad's asked me to invest the money into a house he owns in the UK. I will be 1/3 owner and get 1/3 of the rent per month.

I'm more than happy to do this, I'd rather the money be in property than sitting in a bank account and the property value is rising well.

My questions are:-

1. Will this affect anything during my AOS process? The money was readily available at my interview in

London, but will now be tied up in property. Although my name will be on the deeds and I can present

these at my AOS stage.

2. Where do I stand with regards to paying tax? What do I need to do?

3. My income will be around $400 a month so I'll be below the poverty level, but with Dave's income we'll

be above. He's just started working after 6 months unemployed so this year, he will be below poverty

level, but I had my savings (if that makes sense!) Will that affect anything?

Any advice would be greatly appreciated, I know there's some experts out there!

Helen

[rebeccajo 14]

Helen, it's Dave's income they look at for AOS, not yours. The I-864 is different from the the I-134.

If his income is below the poverty level, you would be better off to have some money in savings. JMHO.

I was below the poverty level at our interview, but had US dollars in the bank. Our adjudicator said we were ok (I had 5 times more than the shortfall). Your $80000 far exceeds what I had in the bank.

Also I will never forget our adjudicator asked us for proof of 'co-mingling of assets'. Your money in a joint account with Dave's money would be proof of that. While joint accounts don't seem to be absolutely necessary to prove a valid relationship, they sure don't hurt.

Maybe you could invest in property with your Dad after the interview?

As to the rental income being taxed over here, I'm sure you would have to report it but I don't believe it would be taxed as long as it's under $80000. Will you be paying tax in the UK? It might actually depend on that. Income earned from real estate is a tricky animal (sometimes) when the property is in the states. You probably need to check with an accountant if you go ahead with this.

Edited April 6, 2006 by rebeccajo

[munchkins 0]

Personally and this is personally, I would not want to have all my money tied up in property in the UK just in case I would need to get my hands on some of it quickly. But that is just me. As far as your other questions I cannot help you there no doubt someone will be along shortly

Glad to hear you made it safe and sound, good luck for the future

[Widge 0]

I too have no idea about taxes, but would suggest you look into it with regard to whatever you intend doing leaving it in bank in uk/ investing in UK/ moving it here.

I personally would not invest in a co-deal with family in the UK for several reasons.

i) you may need access to your money either now or in the future would it be accessible to you without forcing your dad's hand.

ii) Never lend/invest what you aren't prepared to lose. I know this sounds harsh but believe me I say this from experience.

iii) More family disputes arise over money than anything else - look at all the implications of what would happen to your investment should anything to your dad, tax implications in the UK as a non-resident,

I also find it "odd" (but then I come from a weird fmaily ) that you have been going through this process for months and its only the moment you leave UK shores he decides to ask you something so momentous.

Bottom line until you have secured your financial future here with your husband (jobswise/home/ AOS etc) I would reccommend keeping all assets assessible to you.

[cheeky^Wolf 0]

I didn't ask for advice on my decision, I asked for help on taxes and AOS situation and to be honest, if I had issues with trusting a family member... I wouldn't air it on here OR make this move!

For the record, this is all legal and above board and papers have been drawn up by a solicitor in the UK with details of "get out" clauses and wills. I'm not stupid, I've done my homework! Plus out of everyone in the world population, I KNOW my dad is the one least likely to rip me off. He offered this with MY interests in mind, and the reason he only offered now is because I wasn't happy with the money just sitting in my accounts and wanted to invest it. I will not lose money, the property is worth a hell of a lot more than I am putting into it, if anything, I'll make AND have an income!

Thanks Rebeccajo for your advice, as always it's invaluable

And just for the record... my family are NOT weird!

*wandering away shaking her head*

[Widge 0]

I didn't ask for advice on my decision, I asked for help on taxes and AOS situation and to be honest, if I had issues with trusting a family member... I wouldn't air it on here OR make this move!

For the record, this is all legal and above board and papers have been drawn up by a solicitor in the UK with details of "get out" clauses and wills. I'm not stupid, I've done my homework! Plus out of everyone in the world population, I KNOW my dad is the one least likely to rip me off. He offered this with MY interests in mind, and the reason he only offered now is because I wasn't happy with the money just sitting in my accounts and wanted to invest it. I will not lose money, the property is worth a hell of a lot more than I am putting into it, if anything, I'll make AND have an income!

Thanks Rebeccajo for your advice, as always it's invaluable

And just for the record... my family are NOT weird!

*wandering away shaking her head*

OK I just remembered why I stopped posting on these boards !!!

I never said anything whatsoever about the situation being anything other than legal and above board.

I never said anything about you being stupid ............

I never said your dad would "rip you off" I do know though that anyones situation can change and as a victim of the property bubble bursting in 1990 I also know that property can always go down in price as well as remain the same/go up

I never said your family were wierd but I did as an aside state MINE were

I stand by my actual advice that having the funds available to you for AOS purposes or for the period when you are in transition here (ie not working) as many of us found when the period was much longer than expected may be helpful.

As you obviously took offence at my comments I apologise unreservedly - they were not intended in anyway as you took them - and will like I said go back to not posting.

[cheeky^Wolf 0]

OK so I had 4 hours sleep last night, woke up grumpy and read your comments, maybe I should have waited until my coffee kicked in and I was human. To use Dave's favourite UK term, I was a stroppy cow!

I just felt like you made it all sound underhand and "odd" and it's really not at all.

I'm meeting an accountant friend of Dave's over the weekend to discuss the tax side of things so hopefully that will answer some of my questions.

Anyway, no hard feelings Widge and please don't stop posting because of me, I'm sure there are many people you have and can give fantastic advice to.

Helen aka Stroppy!