A family member owns an existing business in the United States. Can this existing business gift its share worth $500,000 to a relative in a foreign country, so they can apply for their EB-5 visa? Would we have to document the funds that originally created the U.S. business?
A gift of funds may be made from the U.S. source as long as the donor (person making a gift) can demonstrate it was lawfully obtained. Gifting transactions and funds tracing should be properly documented. Additionally, a donor should consult a tax professional or a tax attorney with regard to filing Form 709 U.S. Gift Tax Return and related issues.
Yes; a gift can be used as all or part of the investor''s capital to be invested into the new commercial enterprise. It does not matter where the funds were earned (U.S. or abroad), just that they were lawfully obtained. It is the petitioner''s burden to prove through documentation that the invested funds were lawfully obtained.
All money used must be shown to be obtained legally and lawfully.
Yes, they may gift it from here. You need to document the source of the $500,000.
To give a private company''s shares as gift is one thing, but to use those shares as the foreign applicant''s investment into the same company is another thing. What is missing here is the company would not gain any new investment through this process, therefore it would not meet EB-5 requirements.
Yes you would have to source the funds showing the gift and how the giftor obtained the funds.
An EB-5 investment can be made though a gift and the gift can come from the United States or abroad. (There is no requirement that the money comes from a foreign country). The source of funds requirements are the same for whoever gives the gift, so you must show that that money came from a legitimate source (e.g. tax returns).
Yes, a gift can be the source of an EB-5 investment, but you will have to document the origination of the donor''s funds. In your case, you may have to go back to show the lawful source of the funds originally put in the business. Please note there may be tax implications to consider and you should also consult with a tax professional on this.
Yes, the family can make a gift to the investor. There are certain tax forms that need to be filed in the United States. Also, you would have to document the source of the funds.
Yes, a foreign national may use money gifted to them as their investment funds. The gift and transfer would have to be documented. Whether the funds used to create the business would have to be documented depends on when the company was created and how profitable it is, among other factors. If it appears the company was created recently with family''s funds, the immigration service may want to know where this money came from. If it is a long-established and successful company, the immigration service is less likely to be concerned about how it was founded.
Yes you can do that and you will need to show the source of the funds created in the U.S. business.
