Crypto Tax on profits UK account (moving abroad)

gt94sss2

Don't forget that as a US citizen, you need to file a US tax return every year, even if not resident in the USA.

https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad

Bostonerimus1

gt94sss2 said:

Don't forget that as a US citizen, you need to file a US tax return every year, even if not resident in the USA.

https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad

As a US citizen your worldwide finances are liable to US Federal taxation and depending where you were last a US resident that state might also want some tax. As a UK resident you will also be liable to UK tax. You can avoid double taxation by applying the US/UK tax treaty and taking credits and exclusions where appropriate. I assume you have been filing US taxes while a UK resident and FACTA forms if necessary, if not you should get in compliance asap. 

[Deleted User]

Bostonerimus1 said:

gt94sss2 said:

Don't forget that as a US citizen, you need to file a US tax return every year, even if not resident in the USA.

https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad

As a US citizen your worldwide finances are liable to US Federal taxation and depending where you were last a US resident that state might also want some tax. As a UK resident you will also be liable to UK tax. You can avoid double taxation by applying the US/UK tax treaty and taking credits and exclusions where appropriate. I assume you have been filing US taxes while a UK resident and FACTA forms if necessary, if not you should get in compliance asap. 

I have not filed in the last 3 years.  I think i did this because i have not earned income over here in the UK since 2019, when i arrived.  I expect to take profits out of the crypto in stages throughout the 2025 cycle and re-invest/convert back into Bitcoin for a long term investment (5 years) I understand that doing that will still show a capitol gain even though the money will be rolled back into another crypto currency.  I suppose im expecting a tax liability, and i just want to limit the impact when that happens.  Trump has stated he plans to eliminate capitol gains tax on crypto, so hopefully that is in play when i decide to liquidate. 

poolboy

I just changed tax residency from a euro country to uk, the euro country tax office called me in to prove i had a fiscal life in new country. Easy to prove by bank statements.

Point is they really don't want people just disappearing, gives departing country a chance to check they aren't missing anything.

Bostonerimus1

[Deleted User] said:

Bostonerimus1 said:

gt94sss2 said:

Don't forget that as a US citizen, you need to file a US tax return every year, even if not resident in the USA.

https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad

As a US citizen your worldwide finances are liable to US Federal taxation and depending where you were last a US resident that state might also want some tax. As a UK resident you will also be liable to UK tax. You can avoid double taxation by applying the US/UK tax treaty and taking credits and exclusions where appropriate. I assume you have been filing US taxes while a UK resident and FACTA forms if necessary, if not you should get in compliance asap. 

I have not filed in the last 3 years.  I think i did this because i have not earned income over here in the UK since 2019, when i arrived.  I expect to take profits out of the crypto in stages throughout the 2025 cycle and re-invest/convert back into Bitcoin for a long term investment (5 years) I understand that doing that will still show a capitol gain even though the money will be rolled back into another crypto currency.  I suppose im expecting a tax liability, and i just want to limit the impact when that happens.  Trump has stated he plans to eliminate capitol gains tax on crypto, so hopefully that is in play when i decide to liquidate. 

If you fall below certain income levels then you might not be required to file a 1040. But be aware that you are always liable to US tax on your worldwide income and gains just because you are a US citizen. You also have foreign assets and there are forms to file for those above certain limits. You will be liable for capital gains (or losses) when you sell your crypto in the US and wherever you are tax resident. To work out the tax you own and to whom you'll have to apply local and US tax laws and the relevant double tax treaty.