Questions and Answers > EB-5 Investments

What should I be aware of as the receiver of EB-5 funds in the form of a gift?

I am an F-1 student on OPT and am currently in the process of investing in an EB-5 project. The source of funds for the investment will be from my father and it will be in the form of a gift. We have the required docs from his end for the proof of funds. My question is, since the whole investment amount is coming as a gift, would any funds documents (like tax returns/pay stubs, etc.) be needed from my end? Are there any other obstacles I should be aware of?

Answers

• Bernard P Wolfsdorf

  Immigration Attorney

  Answered on February 3, 2023

  You need to show in detail where your father obtained the funds and if any part of it comes from you, then you also need to extensively document the source and the path of these funds.

• Daniel A Zeft

  Immigration Attorney

  Answered on February 2, 2023

  The gift of EB-5 funds from your father may be subject to U.S. taxes or taxes of the foreign country government. All U.S. taxes and taxes of the foreign country which pertain to the gift must be paid. You need accountants in the U.S. and in the foreign country to provide advice and assistance concerning payment of the applicable taxes.

• Lynne Feldman

  Immigration Attorney

  Answered on January 26, 2023

  You will need to show the source of your father’s funds to prove they were lawfully earned and not drug money or laundered funds from a criminal enterprise.

• Mark Kowalewski

  Immigration Attorney

  Answered on January 25, 2023

  I have handled two similar cases. One has been approved, the other remains pending (long processing time). The students in question were not required to submit any supporting financial documents, the signed document transferring the gift was sufficient for the approved case.

• Dennis Tristani

  Immigration Attorney

  Answered on January 25, 2023

  When the source of funds stems from a gift, the analysis will focus on the source of the gifted funds. In your case, this documentation will come from your father. The new USCIS regulations also require seven years of tax returns from the investor. I recommend speaking to your immigration attorney about the specific facts of your case and what documentation is required.

• Michael A Harris, Esq

  Immigration Attorney

  Answered on January 25, 2023

  Yes, it may be possible that your personal income may be needed. The EB-5 Reform and Integrity Act of 2022 requires seven years of your personal income tax returns. If this reveals personal income, you may be asked further about it. Please note that this is not legal advice and it is strongly recommended that you consult with an experienced EB-5 immigration lawyer to understand the requirements and to ensure that your application is complete and meets all of the requirements.