I invested some years ago in an EB-5 project that went bankrupt, and they entered into a settlement agreement with the EB-5 investors that will give me no money back. Per their lawyer, the money I will receive is “marginal.”
I received my permanent residence anyway, and I’m trying to get them to issue a K-1 showing that my equity is $0. However, they refuse to do so and, year after year, provide me with a document showing that I have equity of $500,000. Can I report it as a loss to the IRS?
Additionally, I have tried relinquishing my membership interest to get them to provide me with a K-1 with $0 equity, but they’re trying to make me promise not to sue them for anything known or unknown. Is this something I have to agree to?
Answers
Bernard P Wolfsdorf
EB-5 Immigration attorneysShould be possible, you need to hire an accountant to explain that sustainment met despite the K-1.
Lynne Feldman
EB-5 Immigration attorneysProbably need a tax lawyer and possibly litigation.
Belma Demirovic Chinchoy
EB-5 Immigration attorneysConsult with a qualified CPA for reporting losses. Generally speaking, a project will require a release of liability before they do anything for you, but you should sign it only after receiving proper guidance from a qualified attorney.
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