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What is the source of funds requirement for gifts?

If someone was to gift you some of the required investment, what source of funds requirements does the person gifting the money need to prove?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    The donor must prove how he or she acquired the gift. There also may be a tax return issue for the donor and recipient; some jurisdictions require that taxes be paid. Advisably, contact an EB-5 attorney in preparing the documentation on the source of funds.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    The person providing the gift must provide a detailed source of funds explanation identical to that which the principal investor must provide. This is often the snafu with a gift in that the giftor is prepared to provide the funds but often is reluctant to be subjected to presenting details concerning their income.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    A signed Gift instrument such as a gift letter is fine, along with financial documentation to show the legal source of funds from the gift giver.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The petitioner must prove that the donor (the person giving the gift) obtained the funds lawfully in the first place. The standard of proof is the same (to show a lawful source of funds by a preponderance of the evidence) whether the funds came from a gift or not.

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    Charles Foster

    Immigration Attorney
    Answered on

    If your source of funds is a gift, then yes the person gifting the funds needs to prove a lawful source of funds.

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    Irina Rostova

    Immigration Attorney
    Answered on

    The giftor would be subject to the same requirements as the investor. The lawful source of funds can be demonstrated via tax returns, real estate purchase/sale documents, etc.

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    Alice Antonovsky

    Immigration Attorney
    Answered on

    The person gifting the money needs to show lawful source of funds. This can be done by showing tax returns and other financial information corroborating how the donor obtained these funds. In addition to lawful source of funds that must be shown, it is also important to show the relationship between the Giftor and the Giftee. It is also very important that tax laws of the country where the gifting takes place are adhered to and documentation is shown to support this. Adjudicators of the EB5 petitions are on the lookout for these documents to ascertain that this was, in fact, a true gift.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    The person who gave you the gift will have to show that they obtained the money legally.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    That their funds were earned legally via employment, inheritance, sale of property, tax returns, etc. You also need a letter from the gift giver.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    The person who is making the gift will have to show how he/she acquired or accumulated the funds to make the gift to you. The Source of Fund tracking for that person would be the same as if you had acquired or accumulated the funds from the original of the source.

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    Stephen Berman

    Immigration Attorney
    Answered on

    The person who gifted it must show where they got the money from.

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