The Decline Of The British Pound And Phantom Capital Gains For Americans In The UK

<p>November 20. 2022 - Participants Include</p> <p> </p> <p>Andrew Grossman - <a href='https://www.twitter.com/andygr'>@AndyGr</a></p> <p> </p> <p>John Richardson - <a href='https://www.twitter.com/expatriationlaw'>@Expatriationlaw</a></p> <p>_____________________________________________</p> <p>I am always grateful for the opportunity to catch up with Andrew Grossman who is a UK based former US Foreign Service Officer. Mr. Grossman has compiled the best research in the area of FATCA and FBAR which is available here:</p> <p><a href='https://www.nyulawglobal.org/globalex/Fatca_Citizenship_Based_Taxation1.html'>https://www.nyulawglobal.org/globalex/Fatca_Citizenship_Based_Taxation1.html</a></p> <p>Previous interviews with Mr. Grossman 2014 and 2016 may be found on Youtube:</p> <p><a href='https://www.youtube.com/watch?v=X1Avi8QJygQ&t=1s'>https://www.youtube.com/watch?v=X1Avi8QJygQ&t=1s</a></p> <p> </p> <p><a href='https://www.youtube.com/watch?v=MhMBmz8gt0Y&t=4s'>https://www.youtube.com/watch?v=MhMBmz8gt0Y&t=4s</a></p> <p> </p> <p>_________________________________________________</p> <p>Our discussion today included:</p> <p>- phantom capital gains</p> <p>- the consequences of Brexit</p> <p> </p> <p>_____________________________________________</p> <p> </p> <p>Here is the phantom capital gains provision of the Internal Revenue Code:</p> <p> </p> <p><a href='https://www.law.cornell.edu/uscode/text/26/988'>https://www.law.cornell.edu/uscode/text/26/988</a></p> <p> </p> 26 U.S. Code § 988 - Treatment of certain foreign currency transactions (a)General ruleNotwithstanding any other provision of this chapter— (1)Treatment as ordinary income or loss (A)In general <p>Except as otherwise provided in this section, any <a href='https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=26-USC-2054660126-549748452&term_occur=999&term_src=title:26:subtitle:A:chapter:1:subchapter:N:part:III:subpart:J:section:988'>foreign currency gain</a> or loss attributable to a <a href='https://www.law.co