Questions and Answers > EB-5 Investments

Can funds from a parent in the U.S. be used for an EB-5 visa?

My mom has U.S. status and I am an Indian Citizen living in India. She wants to gift me some money out of her income earned in the U.S. (of course subject to payment of applicable gift tax, if any). Can I use this money as funds for an EB-5 Visa? If so, should the money be wired to India first and then sent back to the U.S.? Or can the money be directly used for opening an LLC in my name and then applying for an EB-5 Visa?

Answers

• Shahzad Q Qadri

  RC Creator

  Answered on March 8, 2013

  Yes funds from your parents that are gifted can be used to invest in the EB5 RC program.

• Mahsa Aliaskari

  Immigration Attorney

  Answered on March 7, 2013

  Yes, you can use gifted funds for the EB-5 investment. As the giftor, your mother will need to provide documentation verifying the lawful source of funds. There is no need for the funds to be transferred to India and then returned to the U.S. You should discuss tax consequences with experienced tax counsel prior to transferring any funds either within the U.S. or in and out of India. Remember that the funds must be your personal funds transferred to the EB-5 business/project and you will need clearly document the path the funds took, referred to as tracing of funds.

• Charlene Bu

  Immigration Attorney

  Answered on March 6, 2013

  It is not required that the money used for EB-5 investment must come from abroad. Your mom can gift you her earnings in the U.S. as funds for you to apply for an EB-5 visa. You don''t need to wire the money outside of the county before transferring them to the company you choose to invest.

• Taher Kameli

  Immigration Attorney

  Answered on March 5, 2013

  Yes, so long as the funds earned by the mother were lawful, and the transfer to the daughter complies with any and all taxation laws, this is acceptable. I would suggest that the mother first transfer the funds to the personal account held by the daughter to demonstrate the daughter?s sole control over the funds, and then the daughter can transfer to an LLC for EB-5 investment.

• Marisa Casablanca

  Immigration Attorney

  Answered on March 5, 2013

  Good afternoon, The gift of funds is very common in the Eb5 investor process. Many individuals have received the funds as a gift from spouses or parents to make the EB5 investment. However, the source of funds have to be traced with respect to the individual gifting the funds. Thank you.

• Jinhee Wilde

  Immigration Attorney

  Answered on March 5, 2013

  Yes, the gift from your mother could be used for your EB-5 application as long as her income source is documented and she qualifies her financial ability to give you the gift.

• Ying Lu

  Immigration Attorney

  Answered on March 5, 2013

  Yes, you can use gifted funds from your mom. You do not need to transfer the money to India first. Actually, if you have a personal bank account in the U.S., you can transfer the money from your mom?s personal bank account to your U.S. personal account and then establish a new business under your name. Subsequently, the gifted funds in your personal account should be invested in the new business.

• Julia Roussinova

  Immigration Attorney

  Answered on March 5, 2013

  Yes, the funds gifted from a parent in the US can be used for EB-5 investment capital. Your mother will need to demonstrate the lawful source of funds (such as accumulated earned income). Additionally, the gift must be properly documented. The funds do not have to be transferred to India but rather from your mother to your personal bank account in the US. Your mother may or may not be required to pay the federal gift tax in the US. A federal gift tax return will generally be required to be filed even if there is no federal gift tax payable. Your mother should consult a licensed CPA or a tax attorney in the US to discuss her specific federal gift tax situation. We are qualified to provide US federal tax advice. Do not hesitate to contact me with any further questions you may have.

• Rebecca White

  Immigration Attorney

  Answered on March 5, 2013

  You may want to explore alternative options other than the EB-5 visa, depending upon your mother''s immigration history. Assuming the EB-5 does make the most sense for you, you will need to be able to show that the funds are yours and under your control not as a loan, but you do not need to transfer funds to India.

• Mona Shah

  Immigration Attorney

  Answered on March 5, 2013

  Yes, you can use the gift from your mother. The money does not need to be wired back to India, as it will be problematic getting it out again. I suggest opening an account here or a joint account with your parent.

• Alexander Lebedinski

  Immigration Attorney

  Answered on March 5, 2013

  You should be able to use the money if your mother makes and documents an irrevocable gift to you. She would need to transfer the funds to your personal account (which could be in India or U.S.), from which you would make the U.S. investment. If the transfer is to your account in India, you should check on any applicable restrictions to transfer the money to the U.S.

• Fredrick W Voigtmann

  Immigration Attorney

  Answered on March 5, 2013

  Yes; you may use gifted funds for your capital investment. You should provide documentary evidence as to how your mom lawfully obtained the funds she is gifting to you. The funds can come from within the U.S.; they do not need to be wired to India first and then back to the U.S.

• Lei Jiang

  Immigration Attorney

  Answered on March 5, 2013

  Yes. You can use funds from a parent for EB-5 program as long as you show the documentation that it is a gift and the parent has earned it legally. It''s best to wire it to India first.

• Rana Jazayerli

  Immigration Attorney

  Answered on March 5, 2013

  Gifted funds are perfectly acceptable for an EB-5 investment, and there is no requirement that the funds come from a foreign country. A wire from a U.S. account in the name of another person that states the name on behalf of whom the investment is being sent is fine. However, the source of the gifted funds will need to be shown. I hope this helps. Please feel free to contact me directly to discuss further.

• Philip H Teplen

  Immigration Attorney

  Answered on March 5, 2013

  The money can certainly be gifted to you and it can stay in the United States. If you move it to India, you could have issues and restrictions on transferring it back out of the country.

• Darren Silver

  Immigration Attorney

  Answered on March 5, 2013

  Yes. The investment money can be gifted to you. Keep in mind that this allocation must still be properly traced and sourced.

• Ed Beshara

  Immigration Attorney

  Answered on March 5, 2013

  A foreign national may receive a gift and invest these funds into an EB-5 project.The gifted funds should be transferred to the personal account of the foreign national, then invested in the EB-5 project.

• Elizabeth Krukova

  Immigration Attorney

  Answered on March 5, 2013

  Yes, EB-5 investment funds can be a gift from a parent and documented as such. There is no need to wire money back and forth.

• Daniel A Zeft

  Immigration Attorney

  Answered on March 5, 2013

  Yes, funds from a parent in the U.S. can be used for an EB-5 investment.

• Samuel Arthur Sue

  Immigration Attorney

  Answered on March 5, 2013

  It has to be personal funds, from the principal applicant''s personal account.

• Roberto Ortiz

  Immigration Attorney

  Answered on March 5, 2013

  You need to ask an accountant in India what will be the tax consequence to you receiving this gift. Your mother can gift you the monies in the US, but it has to be gifted directly to you and not a LLC. If you have any other questions, please do not hesitate to contact me. Thank you.

• Gregory Romanovsky

  Immigration Attorney

  Answered on March 5, 2013

  Thank you for your email. Yes, the law does allow your mom to make a gift and for you to use that money towards the EB-5 investment. There is no requirement for the money to go to India first. Feel free to call us to discuss this further.

• Margo Chernysheva

  Immigration Attorney

  Answered on March 5, 2013

  You can use money from your parent who can gift it to you and you can invest it. The money does not have to go to India first. But you should hire an attorney to represent you.

• Jeffrey E Campion

  Immigration Attorney

  Answered on March 5, 2013

  Yes. Your mom can gift you the money and you can use it as funds for an EB-5 visa. The funds can be wired to a U.S. account that is in your personal name, not as a company name. The money should go to a personal bank account.

• Michael E Piston

  Immigration Attorney

  Answered on March 5, 2013

  Yes, it can, although it will have to be shown how your mother obtained that money. There''s no need for her to send it to India - she can send it to you directly. Needless to say, you must carefully document this transfer so you can later show exactly how you obtained this money. Please feel free to contact me if you have further questions.

• Clem Turner

  Securities Attorney

  Answered on March 5, 2013

  So long as the source of the funds is lawful and there is a clear legal path of the funds to you, then the money can be used for your EB-5 Investment.

• Stephen Berman

  Immigration Attorney

  Answered on March 5, 2013

  Yes, you can do that.

• Reza Rahbaran

  Immigration Attorney

  Answered on March 5, 2013

  EB-5 petitioners may used gifted funds as part of their EB-5 petition. It would be prudent to open a personal account in the U.S where your mother could transfer the gifted funds and from that account you can transfer the funds to your LLC account. For further information please contact Rahbaran & Associates.

• Susan Pilcher

  Immigration Attorney

  Answered on March 5, 2013

  Yes, you can use funds gifted by a parent, provided they are handled properly. There is no requirement that the funds return to India first, and indeed it might be disadvantageous to do so. You should consult closely with experienced EB-5 counsel before moving funds.

• Neville M Leslie

  Immigration Attorney

  Answered on March 5, 2013

  Yes and you can use it directly.

• Steven Anapoell

  Securities Attorney

  Answered on March 5, 2013

  Parents can give funds to children.