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Will I have to pay taxes if I am an investor in the EB-5 visa program?

At what point in the EB-5 visa program do investors have to pay taxes? Do they only have to pay income tax or are they subject to other forms of taxation as well?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    EB-5 investors receiving distributions from a project in a Regional Center or by virtue of their investment in a new commercial enterprise are generally subject to withholding tax until they become a conditional permanent resident in the United States either through consular processing of their immigrant visa abroad or through adjustment of status to a conditional permanent resident (if in the United States in another lawful immigration status). If you are in the United States, you may be subject to US income tax based on substantial presence test. Once EB-5 investors become a conditional permanent resident in the United States, they are subject to federal income tax on their worldwide income. This includes sources of income in the United States and sources of income outside the United States. However, foreign tax credit may be available on income that is taxed outside the United States if the US has an income tax treaty with an investor''s home country. Certain countries do not have income tax treaties with the US. EB-5 investors are also subject to other types of taxes, such as estate, gift, and generation-skipping transfer taxes. State taxes may also apply. It is important that you start engaging in tax planning with a tax attorney and CPA before you immigrate in order to assess your individual situation and receive an appropriate tax planning advice. Generally, an immigration attorney who handles your EB-5 visa matter would be able to refer you to a licensed CPA (certified public accountant) and tax attorney to advise you on various tax rules and regulations in the US and file appropriate IRS forms to ensure tax compliance. We are qualified to discuss US tax implications. Do not hesitate to contact our office should you have further questions.

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    Mark Urbanski

    Immigration Attorney
    Answered on

    I will preface my answer by saying that you should seek out a good tax advisor before, during and after the decision to proceed with an EB-5 based investment. The EB-5 process, if successful, results in you obtaining U.S. legal permanent residence, which subjects you to taxation by the U.S. government on your worldwide income, the same tax treatment as an United States citizen. Therefore you begin to have tax liability as soon as you have been admitted to permanent residence in the United States. You will be taxed on not only income, but also capital gains and property taxes if you acquire property in the United States.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    When you obtain your Conditional Permanent Residency, you must comply with all the tax requirement of any other resident of the U.S., including but limited to income tax. Each EB-5 investment should generate an annual tax report for every limited partner investor. You will be expected to report this as part of your income in your tax return. Please consult your tax advisor for more details.

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    Ron Klasko

    Immigration Attorney
    Answered on

    Although you will need to get advice from an accountant or a tax lawyer, as a general rule, the tax consequences flow when you obtain conditional resident status. At that point, you are subject to taxation on worldwide income. The accountant or tax lawyer could advise whether you may be eligible for any tax credits.

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    Charles H Kuck

    Immigration Attorney
    Answered on

    You will have ot pay taxes on your worldwide income if you are a permanent resident of the U.S.

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    Lei Jiang

    Immigration Attorney
    Answered on

    Yes, if your investment makes money, you have to pay income tax. You might be subject to other taxes depending on the structure of your investment.

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    Karen Weinstock

    Immigration Attorney
    Answered on

    You will have to pay taxes in the U.S. if you derive income in the U.S. or if you become a U.S. resident for tax purposes, either by having a green card or by spending certain amount of time in the U.S.

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    Jennifer Parser

    Immigration Attorney
    Answered on

    Yes, once you become a US permanent resident, you pay taxes on your income worldwide. If you receive any remuneration from your EB-5 investment, you will have to pay taxes on it. Those taxes will probably be assessed based upon your individual income.

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    Elizabeth Krukova

    Immigration Attorney
    Answered on

    I believe you are referring to personal income tax. If this is the case, than once you start spending more than half the time in the United States you are likely to fall under the US tax laws, unless the treaty with your country provides otherwise. Once you receive you (conditional) card you would become subject to US laws. However, US tax laws provide several loopholes for people not to be subject to taxation in US when they live abroad for more than half the time. For example, the first $96,000 may not be taxable at all. Answer: Foreign residents are also susceptible to other forms of taxes, such as real estate tax, car tax if you own property in the United States.

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    Andrea Szew

    Immigration Attorney
    Answered on

    Yes you will have to pay income taxes is you are determined to be a US Tax Resident in the United States. Once you are granted Permanent Resident status or if you are present in the United States for a certain amount of time per year you will be taxable on all your income. You will also be subject to Estate and Gift Taxes if you are a permanent resident in the United States or you are present in the United States for a certain amount of days causing you to be a US resident for tax purposes. This is a very complex question and I advise you to contact myself or a tax professional to get a more comprehensive answer to your question.

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    Anthony Ravani

    Immigration Attorney
    Answered on

    You do not pay taxes assessed on your investment. Taxes are only assessed on income AFTER you become a USA Person.

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    Edward Litwin

    Immigration Attorney
    Answered on

    This is a question best answered by a tax attorney. However, you will be responsible for, at least, paying income tax on any income from your investment.

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    Steven Anapoell

    Securities Attorney
    Answered on

    Yes, you are required to pay taxes. From a US Federal Tax perspective, you will pay taxes on income allocated to you under the Limited partnership or limited liability company agreement. The foregoing should not be construed as legal advice or in any way deem us to have an attorney-client relationship. We would be pleased to represent you following the our entering into a mutually acceptable professional services agreement.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    When the EB-5 investor becomes a conditional permanent resident, he or she must pay U.S. federal taxes on their worldwide income.

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    Larry J Behar, Esq

    Immigration Attorney
    Answered on

    All approved EB 5 investors are subject to worldwide income tax, gift and estate taxes as well. The moment that the investor becomes a true conditional resident is interesting: for those arriving from abroad after having completed their consular processing, the true moment of residency is as of entry at port of entry such as a US airport or seaport. For those who are conducting an adjustment of status, their moment comes as of the moment of receipt of the approval of the adjustment at the interview or the date on the residency card. In all matters, investors are wise to seek specialized tax counsel, both domestic and international, in all their planning matters.

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    Marjan Kasra

    Immigration Attorney
    Answered on

    As a US Permanent Resident, you will have to pay taxes on your worldwide income.? This means that your income will be subject to US taxation regardless of where you are?making your money. This is why you should explore all your options with an experienced attorney to proceed.

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    Richard W Moore, Jr

    Immigration Attorney
    Answered on

    Once you are residing in the US as a permanent resident, you will be subject to US tax laws. You will need to file a 1040 income tax return each year. You should consult with a certified public accountant once you arrive, or even prior to arrival, to discuss your specific situation and do proper tax planning. You may or may not have income attributed to you because of your EB-5 investment. They would mainly depend on whether the enterprise generates a profit. But your US tax return will also require you to report other income you may have earned outside the US. You may get a credit for taxes paid to another country, depending on whether the US has a tax treaty with that country.

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    Stephen Berman

    Immigration Attorney
    Answered on

    If and when they move to the U.S. and draw an income in the U.S. Speak with an accountant about any tax questions.

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    Neville M Leslie

    Immigration Attorney
    Answered on

    US taxation once you become a conditional green card holder.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Investors may have to pay tax on any interest earned on their EB-5 investment or any disbursements of cash received over and above their invested capital.

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    Anthony Korda

    Immigration Attorney
    Answered on

    Once you become a permanent resident you are subject to essentially the same tax regime as US Citizens, although there are certain differences. Broadly, you become subject to tax on worldwide income, even if earned outside the US. There may be tax credits if there are double tax treaties in place. All persons considering permanent residence should seek advice from a qualified tax attorney or accounting professional prior to taking up residence in the US.

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    Boyd Campbell

    Immigration Attorney
    Answered on

    Yes. EB-5 investors have to pay taxes when their American counterparts do, and file tax forms with the IRS no later than April 15, unless they receive an extension.

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    Kate Kalmykov

    Immigration Attorney
    Answered on

    Once you enter the U.S. on an immigrant visa or receive a green card, you will become a lawful permanent resident of the U.S. All lawful permanent residents, including conditional permanent residents are subject to U.S. taxes on worldwide income. EB-5 investors should consult with a tax professional to help minimize their tax liability prior to commencing their lawful permanent resident status. Additionally, investors will be subject to U.S. gift, generation-skipping and estate taxes. However, current law provides for significant pre-residency tax planning opportunities to minimize liabilities.

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