My son and I are both Canadian citizens, currently living in the United States on E-2 visas. I want to loan my son $500,000 to make an EB-5 investment. How can I make this work? What kinds of documentation will I need for this case?
Structuring this deal correctly is very important; you will need to talk to a lawyer. Please keep in mind that you will need to provide the source of funds for the money you intend to give your son.
Yes, you can loan your son money for an EB-5 investment visa. It will be acceptable as long as you can document that the money is from lawful source(s). Be prepared to provide relevant documents showing how you acquired the money, which should include, but is not limited to, tax returns, sale(s) of a property whether it is real or personal, even gifts from anyone, etc. This looks like a familiar case in the past, as I have regularly advised Canadian citizens on their E-visas with the ultimate goal of proceeding to the EB-5 visa. Feel free to consult us, but be ready to discuss all details for putting an approvable EB-5 package together.
You can loan the money to your son. The documents can be a letter or other documents. You need to prove that your fund is obtained lawfully. So, you need to provide tax returns and bank statements.
You need a proper deed of gift and to arrange for proper and timely declaration of gifting. I will be happy to consult further.
You certainly may loan funds to your son for him to use in his EB-5 investment. In addition to a gift letter from you confirming the gift, you will need to fully document your lawful source of funds. You should consult with an experienced EB-5 immigration attorney, such as myself, who can advise you on the specific documents required for your situation.
Personal loans (and commonly, gifts) can be acceptable as long as the source of the loaned funds can be authenticated (that is, where did you get the money to loan in the first place?). Your son will also need to prove he can pay off this loan.
You need to have an attorney who is experienced in EB-5 assist you, and we can successfully assist you.
The $500,000 has to have legal/legitimate traceable trail. To begin with, your son will have to trace the funds from you (i.e., bank transfer, etc), and then you will need to trace your funds to a legitimate source (i.e., selling of real estate, etc).
This is not a problem. You may lend or just gift the funds to your son. Just make sure there is a paper trail. I would also make sure that you have documents on where you obtained the funds.
This is done all the time. The easiest way is to draft a document with the terms of the loan. We will need to show not only where he got the money to invest, but where you got the money to show it was lawfully earned.
Either a gift or a loan arrangement may be an option, and should be properly documented for I-526 petition. You should retain an EB-5 immigration attorney. Please do not hesitate to contact our office, and we will be happy to answer your questions. We are also qualified to provide US tax advice.
You cannot loan him money for the EB-5; you will have to "gift" him the money, with obligation for him to repay you. A loan for EB-5 purposes does not work.
You will need to make a gift of EB-5 investment amount to your son, along with tax and other documents that prove the investment amount you are giving him was obtained through legal source of funds. Many of our clients do this for their children, so this is something an experienced EB-5 attorney could walk you through.
You can either make a loan or gift the funds to your son. If a loan, the son will have to show that he has the financial means to pay back the loan. You will also have to authenticate the lawful source of your funds that you loan or gift to your son.
You can make a gift to your son. That is no issue. But, make sure the gift goes to an account for which he is the only named holder. Also, make sure that the gift you are making will not trigger a gift tax. You should speak with an accountant regarding that issue. Then, you will need to be able to show that the gift you made is from legitimate funds. So, the source of funds tracing will go through your monies earned and the genesis of those funds. Assuming you can document such, there is no issue. Let us know how we can serve you.
This can easily be done you should immediately retain an experienced EB-5 attorney.
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