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Relocation to the UK

  • agree with plan for tax reasons
  • exit tax after 8 years of green card
  • w/ green card meant to spend > 50% of the time
  • releasing green card seems sensible
  • being a gc and not livingg or us citizen outside the us has costs.
  • subject to tax in 2 regimes. every source of income is subject tto highest tax rate.
  • not too worried about tax implications
  • move in august. file as a resident for the period.
  • after that any US sources of income you file as a non-resident
  • split year.
  • once we’re in the UK, its just UK Tax.
  • when we leave what are the links:
    • timing of selling the house
    • brokerage account.
    • 401(k)
    • may force us to file as a non-resident.
    • if we’re not a GC holder, we can use the treaty to a more beneficial way.
    • tax treaty: all say “this is what you can do”,but US Citizen or GC doesn’t apply
  • can leave a 401(k) here
    • if you’re a non-resident, they have e requirement to withhold tax from you.
  • need to dig into pension implications
  • need to file for anything income-generating. if withhold they keep 30% so some people dont file
  • 500k on house sale is capital gains free (+ remodal can increase base rate)
    • 18.8% capital gains probably at our income level
  • bright line test for when it’s a concern on date you’ve left
    • date you surrender the green cards is the date
  • find out how to surrender the green card
    • how long do you have after that before you have to leave?
    • look at 4 things: date of termination is earliest of: date of voluntarily surrending OR
  • better for us to be resident or non-resident to sell the hoouse:
    • jim to check.
  • can Fidelity transfer brokerage account
    • speak to them. can it transfer to a UK brokerage
  • vesting shares
  • property sale and leaseback if you need time
  • split year
    • yes