Moving to America

[Deepsea]

Hi Everyone!

This is a little complicated!

I am considering moving to America with my young family and was wondering what the Tax situation would be regarding selling my principle private residence and two residential property investment's, and bringing the proceeds to the US. All relavent capital gains taxes would be paid here in Ireland of course, but due to the amounts involved would there be any further Tax implications for me in the US.

The reason I ask is I was born in the US and am consequently a US/ Irish (dual) citizen, but returned to Ireland aged 5 with my Irish parent's and lived all my life here to date.

Would this effect my Tax status under the Irish/American tax arrangment /agreements?

Many thanks for your replies in advance!!

Deepsea.

 

[Glenbhoy]

PPR would be tax free.

Investment properties - CGT in Ireland as per usual (if one sold pre year end and one sold post year end, you would actually get the 1270 euro tax free gain per annum for both, this ,may actually double for a couple joint owning the properties, hardly likely to be a consideration, but you never know)

Other Tax implications - Small refund may be due again depending on when you leave, if you are a PAYE worker.
You are ordinarily tax resident in Ireland, I would imagine you are also domiciled in Ireland, thus I do not know of any possible taxes that could affect you in the states. I am no expert on this however and would be very interested to hear what anyone else has to say on this.

 

[Deepsea]

Thanks for the reply Glenbhoy!

Any help is welcome! Availing of the capital gains tax allowance's on the Residential investment's being sold in different year's is a good idea as year end approaches. It would at least pay some moving and travel expenses.

I am especially worried that once the Irish capital gains are paid currently at 20%. Would the US inland revenue service require me to pay them 15%? which is the difference between the Irish Capital Gain's TAX rate of 20% and their 35% (approx) Capital Gain's rate.

Or am I worring unneccessarily.

In short does the Irish/American Tax agreement's address this.

I'm sure other people have emigrated under similar circumstances??

Any help very much appreciated!!

Deepsea

 

[Glenbhoy]

As long as all transactions are completed prior to the move I don't see any issues with regards to US tax. AKAIK you are domiciled and tax resident in Ireland (regardless of where you were born, I imagine you have been here long enough to be classed as domiciled here) and have no obligation to pay taxes in the states.
If some of the transactions are not completed until you move, then possibly you would have to take the double hit (there may be relief under the double tax agreement, but you may still end up paying 38% in total, I don't know), however it is also possible that you would not be classifed as ordinarily resident in the US for tax purposes intially and you may just have to pay the Irish tax. Again, for the money involved a short consultation with a professional would probably be advised. Good luck!