Tax Implications of Family Funding for EB-5 Visa
Hi All: I am trying to understand the tax implications around borrowing vs receiving as a gift, half a million dollars from my family (brother). I am exploring options to apply for an EB-5 visa and need $800,000 to do so. I am partially funding it through my savings, and the rest will be covered with help from my family. I want to understand what the most tax-efficient way of doing so is (both for my brother, who will be gifting the money, and me, who will be receiving it). Thank you, Best, Abh
Quick Answer:
The most tax-efficient method depends on several factors not provided, and I cannot give specific financial or legal advice. However, I can offer some general tax considerations.
For your brother (the giver): Gifting $300,000 is subject to gift tax rules. The annual gift tax exclusion may shelter a portion, but amounts exceeding that limit will reduce his lifetime gift and estate tax exemption. He should consult a tax advisor to understand the implications.
For you (the receiver): Receiving a gift generally has no tax implications for you unless it generates income (e.g., interest from a loan). A loan from your brother, even interest-free, might have gift tax implications for him, depending on the terms and applicable interest rates. Consult a tax professional for personalized guidance regarding both the gift and loan scenarios, considering the complexities of the EB-5 visa application and its potential impact on your tax residency status.
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
