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At what stage will an EB-5 investor receive their first K-1 form?

My I-526 petition is still pending (not approved yet). Do I need to file a tax return or will I be given the K-1 form? At what stage will an EB-5 investor be given their first K-1 form?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    It will depend on the terms when the regional center project starts making distributions to EB-5 investors. You should discuss this with the regional center project representative.

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    John J Downey

    Immigration Attorney
    Answered on

    I believe you will not receive one until you are approved.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    You should get a K-1 for the year you first invested.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    It depends on when the regional center first begins distributing profits.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    If you are admitted as a limited partner or other shareholder in a new commercial enterprise, it is likely that you will receive a K-1 for each annual tax return filed by the entity. Your obligation to file a tax return, however, is only going to begin once you become a lawful permanent resident ("green card" test) or a U.S. resident for tax purposes based upon the "substantial presence" test. You should seek independent tax advice from a competent tax professional.

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    Ally Bolour

    Immigration Attorney
    Answered on

    At the end of each year, your partnership will have to issue a K-1, which you need to deliver to your CPA. The I-526 does not need to be approved for a K-1. You should contact your attorney regarding this for further advice.

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    Raymond Lahoud

    Immigration Attorney
    Answered on

    When USCIS approves your Form I-526, Immigrant Petition by Alien Entrepreneur, you will become a temporary green card holder. With a temporary green card status, even if you do not live in the United States, you are considered as a U.S. tax resident and are subject to all tax requirements as a U.S. citizen. Every year you have to file a tax return reporting your total income. No matter where you live, you will have to declare worldwide income and pay applicable taxes. If you do not properly report your income, it could affect your future green card position and naturalization as a citizen of the United States. Since your Form I-526 is still pending, your investment should still be in escrow and, therefore, it is not yet used and should not be producing income or attributing a loss to you. It is not until the investment is made (after the approval) that you should expect to receive the tax documents. In order to avoid potential serious tax consequences, I would strongly recommend that you understand the basic immigration and tax laws before you become a green card holder.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Your tax obligation starts when obtain your conditional green card, so you will get the K-1 then, unless the Limited Partnership Agreement specifies otherwise.

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    Ian E Scott

    Immigration Attorney
    Answered on

    Filing taxes in the United States is based on days you spend in the United States, or whether you are a green card holder or citizen. If you are not in the United States, you generally will not have to file tax returns until you have the green card.

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