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How can I transfer EB-5 investment funds to a relative?

I live in the USA. Can I gift $500,000 to my brother who is in India to qualify for an EB5 visa? And if the answer is yes do I need to transfer the funds to India, or can I transfer to a new corporation account where he owns 50% equity in the new project.

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    You may gift the funds to your brother''s personal bank account in the US. This should be accompanied by an appropriate gift letter. It would be prudent to speak with a qualified tax lawyer for tax impacts related to the gift. For further information please contact Rahbaran & Associates.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    You can gift the funds. Gift must be properly documented. Gifted funds may be transferred to your brother''s personal account in the US. You should consult a CPA to ensure that you, as the donor, properly report your gift to the IRS for the year of gift.

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    Mahsa Aliaskari

    Immigration Attorney
    Answered on

    EB-5 regulations allow investors to use gifted funds. You can make a gift to your brother, the funds may be transferred to his account in India or to his account in the U.S. (if he has one), as the gift or you will need to provide documentation as if you were the investor verifying the lawful source of funds. It is also important to remember that you should pay any required gift taxes, have a gift letter in place and fully document the gift and transfer of control of funds to him before he invests in an EB-5 project/investment vehicle.

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    Ali Farahmand

    Immigration Attorney
    Answered on

    Yes, under the Current EB5 law, one can gift the $500,000 investment amount to a relative or a friend. The actual gift can be accomplished by a written letter outlining the nature of the gift and that the actual investment is not being used as a collateral. Once you have decided to do this, then you do not need to transfer the funds to India; instead, you can simply forward the funds via a check or wire transfer directly to the escrow account of the EB5 Regional center selected and then provide the necessary documents to prove your own Source of Funds for the $500,000. I have handled a few of these type of gift cases and they can be processed very easily. Also, please note that you do not need to transfer the money into his corporation either. The best approach would be to directly forward the funds into the Regional Center''s EB5 Escrow account. Good luck.

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    Albert Lewis

    Immigration Attorney
    Answered on

    Yes, you can gift your brother the money. If you gift the money to your brother, it is his money to do as he pleases. I would not include any restriction on the gift in any of your gift transaction document. The funds can be located outside India, but I do not understand the part about a new corporation account. Are you suggesting that you open a joint account with your brother and that you deposit the funds in that account to which you both have access? Your brother will need to trace the money to its source so keep that in mind. It can be a gift but what if any ties are involved? You can take a security interest in your brother''s properties but gifts or loans cannot be secured in any way with the EB5 project. Your proposed action sounds reasonable. I would enjoy working with you to see if it can come to fruition for your brother.

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    You can gift the monies to your brother. However, you will have to demonstrate the source from where you obtained the funds. In reference to the project, I would need more information in order to answer your question.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Yes, you make such a gift. A gift requires delivery to the done. Also, the EB-5 requirements are such that the funds to be invested should (at some point in the chain of custody) be in the ownership, possession and control of the investor. That means that you have to either (1) transfer the funds to your brother in India, or (2) your brother might be able to open a bank account in the U.S. or other third country, so then you could transfer the funds to that bank account.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    You can gift to your brother and the funds can stay in the US. However, you need a proper deed of gift and a proper gift tax return should be filed.

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    Echo Meisheng King

    Immigration Attorney
    Answered on

    You can gift the required funds to your brother for EB 5 purposes but you still need to prove your source of funds. However, you do not need to transfer the funds to India first, you could just transfer to your brother''s US account if he has one. And then your brother will further transfer the funds to a new commercial enterprise or an escrow account.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Either is okay. The important thing is for him to be able to document that he obtained the funds lawfully, so it is best to have complete documentation on what is done. Also, if there are strings or deals attached to the gift they should be put in writing. You may even loan him the money but it cannot be secured by an interest in the commercial enterprise which is the subject of the EB-5 investment. You should also check with a tax attorney on any gift tax ramifications.

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    Elizabeth Krukova

    Immigration Attorney
    Answered on

    You can certainly gift it to him and document such gift. However, gift it to him and then he can transfer it to a company (especially when he is not a 100% owner).

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    Ed Beshara

    Immigration Attorney
    Answered on

    EB-5 funds can be sourced through a gift. However the EB-5 investor has to personally invest and transfer personal funds to the EB-5 business.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    You can gift the funds to your brother. He needs to be able to source the funds and show where they came from, which in essence means that you may have to justify how you got the funds. He will need to invest in a investment in the US. While it is not necessary to transfer to India, we recommend it be transferred to his bank account prior to the investment. I am assuming he intends to invest in a EB5 RC project.

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    Kirk A Carter

    Immigration Attorney
    Answered on

    It is best to transfer the funds to an account in his name here in the US. He can apply for a ITIN number and you can then directly deposit the funds into his account. You must document the gift through a statement of gift which makes clear that this is in fact a gift, the relation between you and the motivation for the transfer, it should also make clear that there is not expectation of repayment. He can then use these funds to invest in the Regional Center or investment of his choice. Please note that while you can gift him this money, the source of this money still must be documented, i.e. how you came to possess the money, so documentation will need to be provided that will demonstrate how you earned this money and that it was subject to appropriate taxation, if applicable.

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    Ali Brodie

    Immigration Attorney
    Answered on

    An EB-5 investor must be in control of the funds (investor''s bank account).

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    Mark Ivener

    Immigration Attorney
    Answered on

    You can gift to his personal account in the US.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    You may transfer to a new corporation account in his name. You also need to get a gift letter together for him stating that this is purely a gift and you do not expect to get the money back from him.

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