US Income, State Income, UK Income

Hello Helen. Well I'm glad someone can answer my questions!

* I lost thousands in the stock market in 2001. Is the yearly
  deductible limit still $3000? Will skipping this deduction this
  for a few years stop us from claiming in the future?

* If we haven't yet sold our residence in NJ are we still
  considered domiciled there and have to pay US tax on
  rental income?  

* What's going on about the government removing the
  $80,000 exclusion and can I really afford to work overseas
  and pay double taxes?

* Can you clarify the point about giving up US citizenship?
  It seems like a good idea, why should a non-citizen still    
  have to pay US taxes and what is the worst that can
  happen?
 
Thanks.

Hi there

Capital losses - What do you mean "skipping this deduction"?  If there is a loss, you do not have a choice of skipping it. You must claim it.

NJ Residence - You are still domicile of NJ.  Any income you generate from your rental property there will be subject to NJ tax (as well as Federal of course).

$80,000 Exclusion - This proposed legilation did not get approved (at least for the time being). Phew!!!

Giving up US citizenship - This is the expatriation rules which is quite complex and lengthy to explain. Suffice to say, if you give up your US citizenship to avoid US taxation, the IRS will still ask you to file US return (subject tocertain rules, test, etc....).  If you need more information of this send me an e-mail.

Helen

Hello Helen,

Thank you for your words off wisdom on this forum.

Can you elaborate on your statement regarding the $80K exclusion? I had thought I read this was in fact part of the Senate's package, but I could find nothing at the time regarding the House deal or the final bill. That would certainly be good news if it was not included.

Do you think it is in danger of passage in future?

Hi

Have a look at this for more explanation of the $80,000 exlcusion.  As I mentioned this did not pass, but who knows about the future.  Unlikely though in my opinion.

http://www.iht.com/articles/97767.html  

Helen