Foreign home - Tax on income
Discussion
rockin said:
Aldos Army said:
would the situation be the same if the property was based in the USA?
Yes, same thing.It's essential for ex-pat property buyers to register with the IRS and pay US taxes - this typically means completing both Federal and State tax returns and paying all tax demanded. Taxes paid in the US can be credited against any UK tax liability on income or capital gains.
When a property in the US is sold there's a 15% "withholding tax" deducted by the selling realtor and paid over to the IRS. That's not 15% of your capital gain - it's 15% of the selling price. A properly registered ex-pat taxpayer can reclaim that 15% withholding tax subject to deduction of any capital gains tax due or outstanding income tax. Anyone who's not registered loses their 15%.
http://www.tdflorida.com/firpta-sale-of-us-propert...
Very sensible idea - stops money draining out of the country when profits may be due.
The Moose said:
rockin said:
Aldos Army said:
would the situation be the same if the property was based in the USA?
Yes, same thing.It's essential for ex-pat property buyers to register with the IRS and pay US taxes - this typically means completing both Federal and State tax returns and paying all tax demanded. Taxes paid in the US can be credited against any UK tax liability on income or capital gains.
When a property in the US is sold there's a 15% "withholding tax" deducted by the selling realtor and paid over to the IRS. That's not 15% of your capital gain - it's 15% of the selling price. A properly registered ex-pat taxpayer can reclaim that 15% withholding tax subject to deduction of any capital gains tax due or outstanding income tax. Anyone who's not registered loses their 15%.
http://www.tdflorida.com/firpta-sale-of-us-propert...
Very sensible idea - stops money draining out of the country when profits may be due.
K
Gassing Station | Finance | Top of Page | What's New | My Stuff