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Old 1st November 2018, 12:05 PM
JustLurking JustLurking is offline
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Quote:
Originally Posted by sueinwales View Post
I would now like to divest myself of the stock and invest the capital elsewhere, preferably outside of the USA.
Make sure that if you are investing in your own name, you use only US domiciled funds or ETFs, or individual stocks. Using the usual UCITS funds and ETFs marketed in the UK will lead to appalling US tax problems (Google 'PFIC' for more).

Quote:
Originally Posted by sueinwales View Post
The options seem to be either to sell it or transfer it to my husband. Selling it would involve 3 transactions over 3 years to accomodate the UK capital gains allowance so my preferred option is to transfer the stock to my husband.
Presumably, selling this yourself would also create a US capital gains tax liability that it is far better to avoid? It seems sensible to transfer these stocks to your husband and then let him drain the proceeds using his annual UK capital gains tax-free allowance, something unavailable to you as a US citizen.

Quote:
Originally Posted by sueinwales View Post
The value of the stock being transferred exceeds the US gifting limit of $14000, but is still within the allowance for transfer between spouses. I am hoping that transferring the stock to a nominee account at a british brokerage will not trigger US gift tax, ...
Have you found this article: https://thunfinancial.com/home/ameri...ident-spouses/

Excerpts:
Quote:
Understanding the Cross-Border Tax Implications
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While U.S. citizen couples can gift an unlimited amount between spouses without any estate or income tax consequences, an American with a non-citizen spouse is limited to a special annual gift tax exclusion of $149,000 (2017) for gifts to a non-citizen spouse; gifts in excess of this amount will require the U.S. spouse to report the gift on their federal gift tax return (Form 709) and the “excess” gifting beyond the annual exclusion will reduce the donor-spouse’s remaining lifetime unified credit from transfer taxes (i.e., gift, estate and generation-skipping transfer taxes (GST)). Despite these limitations, interspousal gifting may provide substantial opportunities to lower U.S. income and transfer tax exposure for the mixed nationality couple.
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Gifting Appreciated Stock to a Non-Resident Alien Spouse
This has been considered a controversial strategy, but, if managed and reported properly, has strong legal support (see sidebar). If the couple are residents of a low-tax or no-tax jurisdiction (so little to no taxes will be owed in the country where they reside), and if the non-U.S. spouse is not a tax resident of the United States (i.e., not a citizen, green card holder or a “resident alien” as elected for U.S. tax filing purposes), the U.S. spouse may opt to transfer shares of this stock in kind to the non-U.S. spouse. So long as the gifting (based up-on current market value of the asset) falls below the $149,000 (2017) threshold, the transaction has no federal gift tax consequences (see sidebar). Now the non-resident alien spouse owns considerable shares in the highly appreciated stock, and can sell these shares. As a non-resident alien, there will be no capital gains taxes owed in the United States.
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