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Can I Use a Gift for EB-5?

Can I Use a Gift for EB-5?

Yes, you may use a gift as a lawful source of funds.

Gifts are a commonly accepted source of funds for an EB-5 investment. Any person or group of persons may gift the funds, and the funds may be transferred directly from the donor to the EB-5 project on behalf of the EB-5 investor.

The lawful source and path of the funds used to originate the gift must be properly documented. For example, if the parents sell an investment property to provide you a gift for your EB-5 investment, your parents will not only need to provide the documentation of the property sale, but they will also need to show the source of funds used for the down payment when first purchasing the property. They should also be prepared to share tax returns and bank statements.

The gift should be reasonable. Your family members, friends, or business associates could be the reasonable source of the gift. The donors will need to sign a gift affidavit describing the relationship between the donor and the donee, the reasons for the gift, and that the donor is not obligated to return the gift.

Please note that a gift may have tax implications. The donor and the EB-5 investor are strongly recommended to consult a tax professional before any gift transfer.