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bigduckontax
bigduckontax, Accountant
Category: Tax
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Dear Tax professional. I am a UK taxpayer although

Customer Question

Dear Tax professional.
I am a UK taxpayer although retired & a British citizen.
I sold my holiday home in Florida last year , this sale showed a profit ,although I have lost money on recent property sales in Florida USA. I am told I must submit a
1040 non resident tax return to the IRS.
My questions are :-
What date in 2016 must I meet for this submission.
What percentage of any capitol gain must I pay in US tax.
can I use my losses on recent florida property sales to reduce any tax payable. Yours A. Clarke.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello Mr Clarke, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
The US tax year runs with the calendar. You must file by 18 April 2016 for Federal Tax, state taxes file dates differ.
Capital Gains in the States are usually taxed as income. However, these are long term gains and come under a slightly different regime. You can offset you losses against gains in the same tax year. If you can tell me your net capital gain I can give you some more guidance. Just for starters the rates run from 10% to 39.6%. You can find the rate table and much more here:
https://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States
You will also be liable for Capital Gains Tax in the UK also, but under the Double Taxation Treaty between the UK and the States, and indeed some individual States in the Union as well, the gains can only be taxed in one jurisdiction. Any tax pain to one country being allowed as a tax credit against a similar liability in the other. The Treaty does not, however, protect you from differences in rates of taxation.
I do hope that I have been able to shed some light on your conundrum.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Dear *****. I submitted my florida sales & losses in my recent UK tax return,resulting in no capitol gains tax to pay due to the losses. I bought an apartment in Florida in 2007 for $324,000 & sold it in 2009 for $200,000, the next was a house I bought for $83,400 in 2014 & sold it for $ 170,000 in 2015. Can this loss of approx $ 38,000 be used against the apparent gain.
Expert:  bigduckontax replied 1 year ago.
Here is what Wikipedia have to say regarding the carrying forward of the $38K loss:
'Any additional net capital loss of the individual can be "carried over" into the next year and "netted out" against gains for that year.'
Much the same treatment as the UK.
Thank you for your support.

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