+1-800-997-1228
Questions & Answers

Do I need to declare taxes on an EB-5 investment that was gifted from my parents?

I''m an international student. I received a fund from my parents living in my home country transferred through banks. I want to use it as a fund to invest in EB-5 program. I''m wondering if I need to pay tax for this fund. I don''t have social security number. How can I do that?

Answers

  • Avatar

    Clem Turner

    Securities Attorney
    Answered on

    Taxes are very complicated, especially the rules relating to immigration. If you would like a referral to an immigrant tax attorney, please let me know.

  • Avatar

    Taher Kameli

    Immigration Attorney
    Answered on

    You need to talk to an accountant.

  • Avatar

    Mona Shah

    Immigration Attorney
    Answered on

    You personally do not pay gift tax. It is paid by the donor from the country of origin, if required by the tax laws of that country.

  • Avatar

    Susan Pilcher

    Immigration Attorney
    Answered on

    You need to consult a tax advisor to determine whether you must file tax returns under your circumstances. If necessary, you can obtain a taxpayer identification number for this purpose.

  • Avatar

    Kate Kalmykov

    Immigration Attorney
    Answered on

    You should consult with an accountant about any tax implications associated with the EB-5 investment visa.

  • Avatar

    Alexander Lebedinski

    Immigration Attorney
    Answered on

    As related to you as recipient of the gift, there should not be gift or income tax on the amount of the gift under U.S. federal laws, but you may need to report the gift on your annual tax returns. As related to the person making the gift, assuming the person making the gift is not subject to U.S. taxation (regardless of the gift), the gift of cash funds originating outside the U.S. is not subject to U.S. gift tax. The answer may be different if the person making the gift has property or other assets in the U.S., has U.S.-based income, or has another connection to the U.S. that subjects him to U.S. taxation. If the person making the gift is subject to the U.S. taxation, the gift may still be tax-free under the applicable lifetime tax exemption on gifts, but there would be U.S. reporting requirements. The above should not be considered as tax advice, and you should consult with a CPA with an international tax experience to get an answer to this question.

  • Avatar

    Julie Daniel

    Immigration Attorney
    Answered on

    Yes, gift taxes must be paid according to home country rules.

  • Avatar

    Lynne Feldman

    Immigration Attorney
    Answered on

    You should contact a tax attorney to properly advise you.

  • Avatar

    Ed Beshara

    Immigration Attorney
    Answered on

    You need to consult with an experienced international tax attorney. We use one as part of our team of professionals.

  • Avatar

    Julia Roussinova

    Immigration Attorney
    Answered on

    Under US federal gift tax law, a person who makes the gift (donor) is liable for the payment of gift tax unless exempt from tax or, in certain situations, a person who receives the gift (donee) may agree to pay the gift tax. You will need to look to the gift tax law of your home country where the gift of fund was made (i.e. where you parents live) to determine if the gift tax regime applies in your home country. Your parents should consult a qualified tax professional or tax attorney in your home country to determine if the gift tax regime applies, and whether they are required to pay the gift tax or not. The gift must also be documented properly through gift declaration(s) and bank statements showing transfers. If your home country does not have a gift tax regime, this must be properly documented. Documentation how your parents originally acquired the funds gifted to you will also be necessary to document the lawful source of funds. We will be happy to assist in reviewing your particular situation and advising what documents will be necessary to document the gift and lawful source of funds for your parents.

  • Avatar

    Margo Chernysheva

    Immigration Attorney
    Answered on

    Consult a tax attorney.

  • Avatar

    Lei Jiang

    Immigration Attorney
    Answered on

    If your home country imposes gift tax, then you probably have to pay the tax.

  • Avatar

    Angeline Chen

    Immigration Attorney
    Answered on

    You need to talk to an accountant who deals with international tax.

  • Avatar

    Rakesh Mehrotra

    Immigration Attorney
    Answered on

    Any gift used for EB 5 purposes must be properly documented. You should find out in your home country what the requirements are for making a gift. In most countries the donor must pay a gift tax and a gift deed needs to be executed. As per IRS regulations in the US ?The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.

  • Avatar

    Jinhee Wilde

    Immigration Attorney
    Answered on

    You will need to report any income when you actually get your green card. If you made the investment into the EB-5 program from the money that was gift to you from your parents, the tax on that gift should be paid in your home country where your parents are located. In order to get more detailed advice on tax issues, please consult your tax adviser or CPA.

  • Avatar

    Kenneth Byrd

    Immigration Attorney
    Answered on

    Taxes are usually paid either with a social security number or a tax I.D. number. You would probably use the Tax ID number, which is common in such cases.

  • Avatar

    Roberto Ortiz

    Immigration Attorney
    Answered on

    My recommendation is that you meet with a U.S. Tax attorney so that he can properly advise you. If you have any questions,please do not hesitate to contact me. Thank you.

  • Avatar

    Rebecca White

    Immigration Attorney
    Answered on

    Yes, you need to be sure both any home country gift or transfer taxes and US taxes are paid correctly. You may file taxes using a tax payer ID number. You will want to meet with a tax attorney and an immigration attorney to discuss your options and your plans.

  • Avatar

    J Elle Cox

    Immigration Attorney
    Answered on

    You aren''t a US citizen or resident. The funds will not be realized as "income" in the U.S. Unless there''s special circumstances, no taxes will be owing. For further information, please feel free to contact me.

  • Avatar

    Michael G Homeier

    Securities Attorney
    Answered on

    Yes, all taxes due under US and foreign law based upon a gift must be paid, in compliance with the requirements of those laws. A US tax attorney or certified public accountant are ideal professionals to consult in order to determine what compliance with US tax law is required in such a case, plus what is the tax liability in doing so; foreign tax professionals should be consulted to determine obligations under foreign laws. Funds lawfully gifted may properly be used to finance an EB-5 investment. The tax compliance and payment requirements are separate and distinct, but must also be complied with ? as must the EB-5 Program?s requirements as far as making a lawful EB-5 investment is concerned.

  • Avatar

    Gregory Romanovsky

    Immigration Attorney
    Answered on

    Thank you for your email. It depends on the laws of the country when the gift took place. If the law required the payment of a gift tax, then you must demonstrate that the tax was paid.

  • Avatar

    Shahzad Q Qadri

    RC Creator
    Answered on

    No only residents, citizens and people employed in the U.S. do. You don''t have to pay taxes on funds used to invest.

  • Avatar

    Daniel P Hanlon

    Immigration Attorney
    Answered on

    Generally taxes on "gifts" are assessed to the donor of the gift and not the donee, or recipient. I recommend, however, that you consult with a CPA or Tax Attorney experienced in International tax issues before making any final decisions on your EB-5 Investment strategy.

  • Avatar

    Neville M Leslie

    Immigration Attorney
    Answered on

    There is no U.S. tax until the year you are a resident.

  • Avatar

    Steven Anapoell

    Securities Attorney
    Answered on

    Not on the gift. Just on the income that you are allocated from the actual investment entity (i.e., the new commercial enterprise).

Add your comment

Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.