Originally Posted by lionelcorbett
#1;I am in the process of selling a house I've owned for many years in the UK--my parents have been living in it until recently. I have lived in the US for 40 years with a green card, paying US taxes--I am still a UK citizen. Will I pay US capital gains tax?
#2;What is the best way of transferring funds to US bank?
#1;it depends; aslongas it is your primary residence and you sold your main home and made a profit, you may be able to exclude that profit from your taxable income.yo u can exclude up to $250k in profit from the sale of a main home (or $500k for a married couple) as long as you have owned the home I UK and lived in the home for a minimum of two years. Those two years do not need to be consecutive. In the 5 years prior to the sale of the house, you need to have lived in the house for at least 24 months in that 5-year period. In other words, the home must have been your principal residence.If not then you probably need to pay LTCG tax to UK taxing authorities and then you can claim UK taxes paid to UK on your federal return on 1040. For your state capital gain tax deduction, you need to contact dept of revenue of your home state. To estimate LTCG in $US , I guess you must apply weighted average exchange rater ogf $US against UK pound.
#2;you must convert british sterling into $US and transfer the funds to your acct in US bank by way of wire transfer; your bank in US will report the transfer to the dept of the treasury when the amount of transferred funds is $10K or exceeds $10K. the IRS requires all individuals and businesses to report transactions totaling $10K or more, including personal wire transfers. The payment can be received in one or multiple payments and can be completed as a single transaction or as multiple transactions, as long as it is completed within a 12-month period.