EB-5 investors are foreign investors who have chosen to take part in the EB-5 visa program. The EB-5 visa was initially created as part of the Immigration Act of 1990. The EB-5 visa program created an incentive for foreign nationals to invest money in the United States: after investing a significant quantity of money (minimum of $500,000), the foreign investor would receive conditional permanent residency status. The goals of the EB-5 program were to stimulate economic development and promote domestic job creation.
Since 1990 there have been numerous changes to the program. These changes were made so as to encourage more EB-5 applicants and promote more investment in the U.S. economy.
Washington State and EB-5 Investment
Since its inception, a number of areas within the U.S. have benefitted disproportionately from the EB-5 visa program. The state of Washington plays a major role in attracting EB-5 investors. In point of fact, Seattle-based firms have recruited more than 10% of the total number of EB-5 investors who have been approved for green cards. When put in perspective, this figure is truly spectacular.
Foreign investors have funded many significant projects in the Seattle area and have played a major role in promoting the general health of the Seattle economy.
Because of their unique situation, EB-5 investors have a particular set of tax issues which they need to address. Once they obtain conditional permanent residency, EB-5 investors are subject to federal income tax on their worldwide income; they are liable for other types of taxes as well, such as estate, gift and capital gains taxes. Given their relatively complicated tax situation, it is always important for EB-5 investors to seek out a qualified tax professional so that they can develop an optimal tax strategy.
Huddleston Tax CPAs has a history of assisting EB-5 investors and is conversant with their particular concerns and needs.
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