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How much does the IRS tax EB-5 investments?

Good afternoon. I am interested to apply for the EB-5 visa through investment of U.S. $ 500,000.00 U.S.. I wonder if the IRS charges any taxes in Brazil for this investment to be made ​​and, if so, what would be the value of this tax?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Your investment will not be taxed. However, when you become a U.S. resident, your worldwide income will be subject to U.S. tax. You should consult a tax attorney for further information.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    The IRS has no authority to charge taxes in Brazil. It will charge taxes to the RC and if you derive income from the investment, then it will assess taxes on that.

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    David Tseng

    Immigration Attorney
    Answered on

    The U.S. IRS taxes capital gains and ordinary income from EB-5 ventures no differently than from other sources. The critical difference is the status of the I-526 applicant and whether he or she is deemed a resident or non-resident alien for the tax year in question. If he or she is a non-resident alien, the U.S. IRS will impose taxes unless a treaty exists between the U.S. and the non-resident alien''s country of citizenship. Currently, no such treaty exists between the U.S. and Brazil although an information exchange agreement was recently passed by the Brazilian government. Whether you are a resident or non-resident alien for tax purposes is not necessarily determined by your immigration status. The IRS overlays a "substantial presence" test over the "green card" test, either of which may trigger resident alien status for tax purposes. The U.S. does not have jurisdiction to tax transactions in Brazil.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Consulting with an experienced international accountant or attorney they should be able to advise you on the tax consequences. There are international laws against double taxation in two different countries.

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    Margo Chernysheva

    Immigration Attorney
    Answered on

    I am not a tax attorney and cannot give you a tax advise. But just in general, usually there is very little return on your EB-5 investment. As a citizen of Brazil, you are subject to whatever Brazilian tax you owe on any income you make. Your investment of $500,000 is not income, so should not be taxed. You will pay tax to the US on what you make in the US until you become a legal permanent resident. After you are LPR, you pay tax to the US on your worldwide income. Because there is no tax treaty between US and Brazil, unfortunately you may be subject to double taxation on your income even if you already paid tax on it in Brazil or/and US. So, if you have and will continue to have income outside US, you maybe taxed by both countries on that income. You should always consult with a tax specialist on any tax issues.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    Our tax system does not charge a tax on assets or investments but rather net income. I will be happy to discuss further.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    You should consult a tax professional to answer this question. My understanding is that the IRS only taxes income, which might include any return, interest or dividend on your investment. Again, you should consult a tax professional.

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    Karen Weinstock

    Immigration Attorney
    Answered on

    There is no tax on the investment but once you become a permanent resident you would have to pay U.S. taxes as a U.S. resident which is on your worldwide income from that point on.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Speaking only as an immigration attorney, I can recommend corresponding with a U.S. Tax Attorney, Financial Planner, or CPA. That said, retaining a qualified U.S. Immigration with experience with the EB-5 program can help you coordinate with other professionals and help you reach your U.S. Immigration goals.

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