+1-800-997-1228
Questions & Answers

What tax liability will my daughter have on gifted EB-5 visa investment funds?

I live in a tax-free country in the Middle East. My daughter also does not live in the U.S. I want to gift her the money she needs for the EB-5 Program—what tax liability will she have, for example, will she be liable to gift taxation, on the $500k now or after 5 years?

Answers

  • Avatar

    Charles Foster

    Immigration Attorney
    Answered on

    Your daughter should not have any tax liability since the gift would have been made to her prior to her becoming a Lawful Permanent Resident of the United States.

  • Avatar

    Julia Roussinova

    Immigration Attorney
    Answered on

    Under U.S. federal tax law, a U.S. donor is generally liable for the payment of a gift tax (if any), subject to certain annual exclusion and lifetime gift tax exemption amounts. A donor is a person making the gift. A donor files Form 709 to report the gift and use any applicable exclusion and exemption amounts. Because you are not a U.S. resident, the laws of your country govern the gift and it appears you do not have a gift tax imposed in your jurisdiction. If your daughter is a U.S. resident, she needs to file an informational Form 3520 to report the gift from you (a nonresident alien individual) in excess of $100,000.

  • Avatar

    BoBi Ahn

    Immigration Attorney
    Answered on

    I am not a tax attorney so my knowledge in this area is very limited. However, a gift tax is assessed to the giver, not the recipient. So, there will be no tax consequences for her and since you (the giver) are not a resident/citizen of the U.S., you would be subject to whatever tax regulations exist in your resident country.

  • Avatar

    Irina Rostova

    Immigration Attorney
    Answered on

    Normally, if the gift originated outside of the U.S., then she would not be liable for any tax in the U.S. once she brings the funds here, but the exact transaction should be discussed with a U.S. tax attorney.

  • Avatar

    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    First, you need to carefully evaluate the tax liabilities for her and yourself. It appears your country does not have a gift tax, so if she is not classified as a U.S. resident, she too might not have liability. However, it is always advisable to consult with an international tax advisor and an international estate tax planner when pursuing EB-5.

  • Avatar

    Dale Schwartz

    Immigration Attorney
    Answered on

    There should not be any gift tax in the USA at all. You are not subject to U.S. taxation (I presume) and, since she does not live here, neither does she. You can gift her the funds and then she can apply for EB-5.

  • Avatar

    Rebecca Singh

    Immigration Attorney
    Answered on

    From a general standpoint, you or your daughter would not have to pay a gift tax if you are gifting from a tax-free country. Your daughter will be taxed on the interest earned from the $500,000 investment. Before moving forward, it would be best to consult with a tax professional from your home country and the U.S.

  • Avatar

    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Under U.S. tax laws, gift taxes typically are paid by the donor if he or she is a person subject to U.S. taxation. The recipient of the gift usually does not have any tax liability. You could consult with an international tax expert, who can confirm any tax liability incurred by your proposed arrangement.

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.