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What’s the tax implication on the gifted EB-5 funds?

I applied for EB-5 with money gifted from my parents. The money was transferred from India to my U.S. account as a gift. All Indian tax regulations were followed during the transaction. Are there any tax implications in the U.S. for the gifted money? Is there anything that needs to be reported to the IRS?

Answers

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    The gift of the EB-5 funds must comply with the tax laws and regulations of India and the United States. You need to contact an experienced U.S. accountant for advice and assistance concerning the tax implications of this gift and the required reporting.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    There is no U.S. tax implication. The gift is fine for EB-5 investment, but you must document the gift and proove the money was earned by the donor from legal source(s).

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Check with a U.S. tax attorney who handles international issues.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    The person who receives the gift does not have to report the gift to the IRS or pay gift or income tax on its value.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    A U.S. person reports aggregate gifts in excess of $100,000 from each nonresident alien individual donor (a foreign person making a gift) on IRS Form 3520. It is informational reporting and generally must be filed for the tax year in which a gift is made. Consult your tax preparer for more information.

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    Sally Amirghahari

    Immigration Attorney
    Answered on

    If your parents are not U.S. persons, meaning they are not green card holders, citizens or visa holders, then there is no tax implication for you. The only thing you need to do is to file a compliance report by filing the IRS Form 3520 at the end of the year with the IRS if your gift exceeded $100,000 per fiscal year.

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    Marko Issever

    EB-5 Broker Dealer
    Answered on

    For the final word on this you should certainly consult a tax attorney or an accountant. Most likely, though, you will not be subject to any taxes on the gift because you are not a tax resident in the U.S. yet. Once you become a permanent resident of the U.S., i.e., a green card holder, then, among other things, the earnings from the EB-5 investment (in other words, the income you receive from the investment) will be subject to U.S. taxes. Since you mention that all the Indian tax rules have been followed it appears to me that you don't have anything to worry about.

  • Avatar

    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    You should consult a U.S. tax expert, but typically U.S. gift tax would be the liability of the donor, not the donee or gift recipient. Since your parents are not U.S. residents for tax purposes, there likely is not a tax reporting requirement.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    To the best of my knowledge, the gift recipient does not have to pay taxes on a gift (since it is not income), but you should verify with a CPA.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    I don't think so, but you really need to ask an accountant this question!

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    Charles Foster

    Immigration Attorney
    Answered on

    No, there are no tax implications in the U.S. for gifted money. You would only pay taxes on income. No income needs to be reported to the IRS.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    I will defer to my friends in the tax field for this one.

  • Avatar

    Hassan Elkhalil

    Immigration Attorney
    Answered on

    Please seek the advice of a tax advisor.

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