You should consult with competent tax counsel on the tax implications of receiving your EB-5 funds as a gift.
Check with a tax expert, not an immigration lawyer.
You need to get a gift letter from the person gifting you the funds. For US tax implications you need to consult with a competent tax professional
You should obtain gift letter from competent tax counsel in the country where you are receiving the gift.
Please refer your tax questions to a tax expert.
Gift tax applies to the person giving the gift, not the person who receives it. Someone who is a US citizen can get an unlimited amount of money from any non US citizen. This example might help.
You uncle is in China, he sends you 100 million USD from him self as a Chinese citizen, your tax is 0.00.
Another taxable example. Your a US citizen you give your brother another US citizen a 20,000.00 usd gift. You will need to pay the gift tax on the amount in excess of 12,000.00
The person giving it pays not the receiver.
This is a quote reflecting the current tax law for the USA Federal income tax concerning gifts.
As per the data available in 2006, the per head annual transfer of properties worth $12,000 is not taxable. Transfer of properties upto the said amount can be done as many times as possible in a year, in an unrestricted manner.
Even if a person enjoys complete relaxation from U.S. Gift Tax and is left with no due tax amounts, he/she is still required to file Form 709 for deriving tax return benefits.
It depends on several factors. The manner by which aliens are taxed by the United States significantly depends on the residency status of such aliens. Although, the tax residency rules are based on the immigration laws concerning immigrants and nonimmigrants, the rules define residency for tax purposes in a way that is different from the immigration laws. For purposes of income tax, alien individuals are generally divided into two categories: resident aliens and nonresident aliens.
In short, if you meet a definition of the resident alien for U.S. income tax purposes you will be taxed on your worldwide income, as any other U.S. citizen or resident alien. Code section 6039F imposes annual information reporting requirements on any U.S. person or resident alien who receives a foreign gift in excess of $100,000 from a foreign individual or estate. The gift must be reported on IRS Form 3520 describing the property received, the FMV of the property and the gift date. A U.S. person or a resident alien who fails to report such foreign gifts will be subject to penalties equal to 5% of each gift for each month of non-compliance (not to exceed 25% of the aggregate foreign gifts).
If you don’t meet a definition of a resident alien for U.S. income tax purposes, you will not be required to report gifts received from foreign individuals. Nonresident aliens are subject to gift tax only on gifts of real estate and tangible personal property having a U.S. situs at the time of the gift.
If questions should arise as to what residency test and/or tax rules are applicable to resident and nonresident aliens, they can be summarized as follows:
In general, resident aliens are taxed in the same manner as U.S. citizens, that is a resident alien is taxed on income derived from all sources, including sources outside of the United States, and nonresident aliens are taxed only on certain income from sources within the United States and on the income described in IRC. §864( c)(4) from sources outside of the United States which is effectively connected for the taxable year with the conduct of a trade or business in the United States.
An important aspect is that an alien is treated as a resident alien in one of three ways:
1. By being admitted to the United States as, or changing status to, a Lawful Permanent Resident under the immigration laws (the Green Card Test);
2. By passing the Substantial Presence Test (being physically present in the United States at least 31 days during the current year, and 183 days during the 3-year period that includes the current year and the 2 years immediately before that) or
3. By making "First-Year Choice" (a numerical formula under which an alien may pass the Substantial Presence Test one year earlier than under the normal rules).
I hope this helps. If you have further questions, feel free to contact us at firstname.lastname@example.org or visit our website at www.littleponce.com. Our CPA firm specializes in expatriate and international tax issues.