I have lived in the US all of my financial life and am preparing for a move to the UK. I am a dual citizen but have never lived in the UK. Thanks to the likes of this forum I feel like I have optimized my finances well for my current FIREd situation. Learning about how that intersects with another country is an intimidating process.
I have done some reading such as https://www.bogleheads.org/wiki/US_tax_ ... ing_abroad and https://www.bogleheads.org/wiki/Investi ... _residents. It is clearly a lot to digest and I'm not fully there yet, though I am getting an outline of the basics. Some specific questions I have:
Finally, in case it matters, we have a house in the US that we will keep and rent out. I know that ideally you'd sell and take the capital gains in the US before leaving, but we aren't committed to this being a forever decision, and want to keep a home base to return to if we so decide in the future. I realize that rental income will be subject to income tax in the US without a mortgage interest deduction, but that just seems to be the price to pay. An additional complicating factor is that we got an ARM that will reset in 4 years, though I plan to figure out how to deal with that once we get there.
I have done some reading such as https://www.bogleheads.org/wiki/US_tax_ ... ing_abroad and https://www.bogleheads.org/wiki/Investi ... _residents. It is clearly a lot to digest and I'm not fully there yet, though I am getting an outline of the basics. Some specific questions I have:
- I plan on keeping a US address (relative or virtual mailbox) for my Vanguard investing purposes - pitfalls here?
- I don't expect to do any future investing as we are already FIREd, so I believe I can avoid some of the complexities of which funds I am allowed to buy. Do you see any issues with keeping my investments as-is?
- We have been doing Roth conversions each year and have about ~$150k Traditional left to go. Should we bite the bullet and convert all of it in this last tax year before leaving?
- Taxable Bond - 0.4% of portfolio
- Taxable Stock - 48%
- Traditional Bond - 12%
- Roth Bond - 16.6%
- Roth Stock - 23%
Finally, in case it matters, we have a house in the US that we will keep and rent out. I know that ideally you'd sell and take the capital gains in the US before leaving, but we aren't committed to this being a forever decision, and want to keep a home base to return to if we so decide in the future. I realize that rental income will be subject to income tax in the US without a mortgage interest deduction, but that just seems to be the price to pay. An additional complicating factor is that we got an ARM that will reset in 4 years, though I plan to figure out how to deal with that once we get there.
Statistics: Posted by ysette9 — Wed Nov 13, 2024 6:10 pm — Replies 1 — Views 383