Capital gains on rental property owned in the U.S

F

flmayo

Registered User
Messages
15
I have lived in the U.S for 30 years, we plan to move back to Ireland permanently within the next 2 years and buy a house. My wife will move back July 2018 with the children and I will follow in July of 2019. We are both dual citizens. We own both a primary residence and a rental property, we plan to sell the primary residence before July 2018. The quandary I have is what to do with the rental property. The rental property is in my name only as I bought it prior to getting married. I owe $100000 on the property, it is worth $325000. After expenses I clear $1000 a month. The mortgage will be paid off in 12 years if I hold onto the property. I am wondering what would be the best thing for us to do and the consequences of each action
1. Sell prior to my wife moving back next year?
2. Sell prior to me moving back in July 2019? 3. Hold onto the property and continue to rent it out while living in Ireland? It is a huge move for us all after living in the U.S for so long, we just want to make sure that we do not make any financial mistakes adding to the stress.
 
I have property rented in the U.S. The most important part of this is the local agent, you should use a well proven, professional agent, keep the rental property, I have found tenants in the U.S. Respect their tenancy partly I am sure due to negative impact on their credit rating if they default and partly as the properties are mostly let unfurnished., it is easy to sort out the tax side and as I am sure you know there is a double taxation agreement so you will not pay twice.
 
Thanks Palerider for the response! In regards to the double taxation agreement will I not be liable for Irish Capital Gains once I start living in Ireland permanently? I thought once I lived in Ireland that after a certain period of time I would pay 15% CGT here and then 33% on the remainder once the money is remitted to Ireland.
 
Yes you will upon disposal, if the property is performing why dispose of it at any point.​
 
Palerider said:
Yes you will upon disposal, if the property is performing why dispose of it at any point.​
Click to expand...

Our goal is to have little or no mortgage when we move back. I'll be retiring so I'm trying to get all my ducks in a row. I have already weathered one property market collapse while owning the property, that was a tough time with a few people advising me to let the property go at the time. I wouldn't want to go through that again while retired and living in Ireland.

At what stage upon my return would I be liable for the CGT in Ireland? From what I have read on the revenue website I believe if I have lived in Ireland less than 183 days or 280 days over two consecutive years I will not be liable in Ireland for CGT. If I plan to return permanently on 1 July of 2019, what would be the date I need to have the property sold by to avoid CGT in Ireland? Also would the fact that my wife will have returned a year before me have any bearing on this date (the property is not in her name)?
 
I cannot advise you on your specific query however I am retired and I have no intention of ever selling my US properties, just my point of view but as long as it produces some income it works for me.
 
You must log in or register to reply here.
Back
Top