Igor Kasyanchuk

Can all of the invested funds be a gift?


Fredrick  Voigtmann
May 26, 2015 11:32 AM  Fredrick Voigtmann

Yes; 100% of the invested funds can be a gift. There are a few things to remember, though. First, there must be a gift letter that makes it clear the funds are being gifted and not loaned, i.e., they do not have to be repaid and there are no other restrictions. Second, the lawful source of funds of the donor must be clearly documented. Third, if the donor's funds are secured by a loan, USCIS might have a problem since the collateral likely will not be owned by (held in the name of) the investor/petitioner.

Mark Ivener
December 10, 2015 06:02 PM  Mark Ivener

Yes, but the person giving must prove source of funds.

Raymond Lahoud
February 28, 2016 03:19 PM  Raymond Lahoud

Yes -- it is important, however, that the person providing the gift is able to trace/source the funds.

Ismael Fernandez
May 03, 2016 07:28 PM  Ismael Fernandez

Yes it can be a gift as long as it is documented and irreversible and traceable. The recipient needs however to take into consideration tax implications of gifts. This is usually not a problem for EB-5 size gifts of $500k in the US, but it may still be an issue in their home country. It is always worth to check before finding out afterwards.

A. Olusanjo Omoniyi
June 24, 2016 05:02 PM  A. Olusanjo Omoniyi

Yes, it can be 100%. The main issues are the source of such gift must be legal and it is well-documented as a gift and it is neither a loan nor refundable. Advisably, get it in writing.

Gerald  Cipolla
February 08, 2017 10:50 AM  Gerald Cipolla

Yes, all of the invested funds may be gifted to the EB-5 investor. We generally advise the person providing a gift (giftor) be able to document how the gifted funds were acquired in detail, while also tracking the funds were gifted from the giftor. Additionally, it is important to document that the funds were gifted with a proper gift declaration. It is important to note the difference between a gift where the beneficiary/EB-5 investor has full control over the gifted funds without any conditions, in contrast to a loan. The giftor and beneficiary should review the tax implications of the gift in advance of making the gift.

February 22, 2017 03:20 AM  

Yes, it can be a gift or even a loan. But keep in mind the proof of funds requirement.

Sally Amirghahari
June 27, 2017 05:22 PM  Sally Amirghahari

Absolutely. However, the source for the gift fund must be provided by supporting documents to be submitted with the I-526 petition.

Marko Issever
September 26, 2017 05:23 PM  Marko Issever

Yes. Please keep in mind though that this method is still subject to source of funds scrutiny. Also, the donor needs to check with the tax authorities in their legal jurisdiction. The gift might have tax consequences that need to be considered as well.

Eric Santa Maria
January 12, 2018 01:35 PM  Eric Santa Maria

Yes, source of funds should be carefully documented. Review tax implications and filing requirements for donor.

Mark A.M. Catam
February 20, 2018 04:04 PM  Mark A.M. Catam

Yes, gift is 100% permitted. However, USCIS will require that the giftor document his/her source of the gift, which requires extensive documentation and paper trail ('follow the money" test). In addition, there are countries that impose gift tax. Hence, I always advise clients to consult with their country's tax expert if there are any tax issues related to gifts.

Gregory Finkelson
June 27, 2018 03:05 PM  Gregory Finkelson

Yes, the person who gives the money needs to show how he/she obtained it.

Niranjan Adhikari
January 16, 2019 10:18 AM  Niranjan Adhikari

Absolutely so long as the source of fund by the investor and the legal source of income of the grantee is shown.
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