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My head is spinning with all of the information regarding the new FACTA regulations. My husband and I are planning on buying a home this year and I am curious as to whether having my name on the deed will have a tax implication due to the stringent FACTA requirements. I know that Americans are always subject to the $250k capital gains tax when you sell a property, but is there any information anyone has as to whether it would be advantageous from a US tax perspective to have only my husband's name on the deed of the house? Should my name also be removed from our joint UK pension?

Thanks in advance.
 

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FATCA has nothing to do with real property per se. The "FA" means "financial account." (FBAR also is for financial accounts.) They are reporting requirements only. Whether you remove your name or not from the pension, you already have a reporting requirement if you meet the threshold for FATCA and/or FBAR. The only thing removing your name might do in terms of FATCA/FBAR is eliminate a mere reporting requirement for that account in future years.

$250K capital gains tax when you sell a property? No, that's the exemption. That is, generally the first $250K (per spouse) of capital gains is U.S. income tax free. The U.S.-U.K. tax treaty might also have a bearing on which government taxes what above that.
 

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Under FATCA, US taxpayers with certain foreign financial assets, bank accounts, foreign stock, partnership interests, foreign mutual funds, these type of things, that exceed certain thresholds must report those assets to the IRS (via Form 8938).

If you’re living overseas, then your thresholds are higher than for people who live in the US. Although it is only 50K for those living in the States, if you’re living abroad, it starts at $200,000 on the last day of the year or $300,000 as a peak value throughout the year for single filers. If you are married these numbers double.

As such, if you won't be above these requirements, you don't have to worry about the FATCA.

Please note that you would have to file an FBAR if you have more than 10K in foreign accounts. That would be the only benefit to taking your name off the pension account, is that you wouldn't have to file for FUTURE years. However the FBAR is a simple form, and you are not taxed on these amounts, so I would really think twice before removing your name just to get out of filing the form.
 
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