Post on 27-Jul-2020
Pre-Immigration Tax and US InvestmentPlanning for High Net Worth IndividualsNavigating the EB-5 Investors Visa Program Leveraging Tax Credits and Avoiding Tax Traps
1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific
TUESDAY APRIL 26 2016
Presenting a live 90-minute webinar with interactive QampA
The audio portion of the conference may be accessed via the telephone or by using your computersspeakers Please refer to the instructions emailed to registrants for additional information If youhave any questions please contact Customer Service at 1-800-926-7926 ext 10
NOTE If you are seeking CPE credit you must listen via your computer mdash phone listening is nolonger permitted
Todayrsquos faculty features
Larry J Behar Esq Managing Partner Behar Law Group Ft Lauderdale Fla
Richard S Lehman Attorney United States Taxation and Immigration Law Boca Raton Fla
Tips for Optimal Quality
Sound QualityIf you are listening via your computer speakers please note that the qualityof your sound will vary depending on the speed and quality of your internet connection
If the sound quality is not satisfactory you may listen via the phone dial1-866-328-9525 and enter your PIN when prompted Otherwise pleasesend us a chat or e-mail soundstraffordpubcom immediately so we can address theproblem
If you dialed in and have any difficulties during the call press 0 for assistance
NOTE If you are seeking CPE credit you must listen via your computer mdash phonelistening is no longer permitted
Viewing QualityTo maximize your screen press the F11 key on your keyboard To exit full screenpress the F11 key again
FOR LIVE EVENT ONLY
Sound QualityIf you are listening via your computer speakers please note that the qualityof your sound will vary depending on the speed and quality of your internet connection
If the sound quality is not satisfactory you may listen via the phone dial1-866-328-9525 and enter your PIN when prompted Otherwise pleasesend us a chat or e-mail soundstraffordpubcom immediately so we can address theproblem
If you dialed in and have any difficulties during the call press 0 for assistance
NOTE If you are seeking CPE credit you must listen via your computer mdash phonelistening is no longer permitted
Viewing QualityTo maximize your screen press the F11 key on your keyboard To exit full screenpress the F11 key again
Continuing Education Credits
In order for us to process your continuing education credit you must confirm yourparticipation in this webinar by completing and submitting the AttendanceAffirmationEvaluation after the webinar
A link to the Attendance AffirmationEvaluation will be in the thank you email that youwill receive immediately following the program
For CPE credits attendees must participate until the end of the QampA session andrespond to five prompts during the program plus a single verification code In additionyou must confirm your participation by completing and submitting an AttendanceAffirmationEvaluation after the webinar and include the final verification code on theAffirmation of Attendance portion of the form
For additional information about continuing education call us at 1-800-926-7926 ext35
FOR LIVE EVENT ONLY
In order for us to process your continuing education credit you must confirm yourparticipation in this webinar by completing and submitting the AttendanceAffirmationEvaluation after the webinar
A link to the Attendance AffirmationEvaluation will be in the thank you email that youwill receive immediately following the program
For CPE credits attendees must participate until the end of the QampA session andrespond to five prompts during the program plus a single verification code In additionyou must confirm your participation by completing and submitting an AttendanceAffirmationEvaluation after the webinar and include the final verification code on theAffirmation of Attendance portion of the form
For additional information about continuing education call us at 1-800-926-7926 ext35
Pre-ImmigrationIncome amp Estate
Tax Planning
PART OF THE LEHMAN TAX LAWKNOWLEDGE BASE SERIES
ByRichard S Lehman Esq
TAX ATTORNEYwwwLehmanTaxLawcom
Richard S Lehman Esqbull Masters in Tax Law from New York University Law Schoolbull US Tax Court and Internal Revenue Service experience in Washington DC
Richard Lehman regularly works with law firms accountants businesses andindividuals struggling to find their way through the complexities of the US tax lawIn short Lehman is a valuable resource to each of these audiences
With over 46 years as a tax lawyer in Florida Lehman has built a national reputation forbeing able to handle the toughest tax cases structure the most sophisticated incometax and estate tax plans and defend clients before the IRS
bull Mr Lehmanrsquos international practice spans the globe This has resulted inLehmanrsquos representation of foreign investors giving tax and practical advice inacquiring and selling a wide range of commercial businesses and other USinvestment assets This includes not only the acquisition and sale of activebusinesses in the US but also investments in all fields of real estate includingraw land shopping centers commercial office buildings condominiumsresidential apartments residential homes and the like
LEHMAN TAX LAW KNOWLEDGE BASE SERIES55
bull Masters in Tax Law from New York University Law Schoolbull US Tax Court and Internal Revenue Service experience in Washington DC
Richard Lehman regularly works with law firms accountants businesses andindividuals struggling to find their way through the complexities of the US tax lawIn short Lehman is a valuable resource to each of these audiences
With over 46 years as a tax lawyer in Florida Lehman has built a national reputation forbeing able to handle the toughest tax cases structure the most sophisticated incometax and estate tax plans and defend clients before the IRS
bull Mr Lehmanrsquos international practice spans the globe This has resulted inLehmanrsquos representation of foreign investors giving tax and practical advice inacquiring and selling a wide range of commercial businesses and other USinvestment assets This includes not only the acquisition and sale of activebusinesses in the US but also investments in all fields of real estate includingraw land shopping centers commercial office buildings condominiumsresidential apartments residential homes and the like
Pre-ImmigrationIncome Tax Planning
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
66
What is Pre-ImmigrationIncome Tax Planning
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
77
Pre-ImmigrationIncome Tax Planning
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
88
Pre-ImmigrationIncome Tax Planning
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
99
Definition for Tax Purposes
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1010
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Tips for Optimal Quality
Sound QualityIf you are listening via your computer speakers please note that the qualityof your sound will vary depending on the speed and quality of your internet connection
If the sound quality is not satisfactory you may listen via the phone dial1-866-328-9525 and enter your PIN when prompted Otherwise pleasesend us a chat or e-mail soundstraffordpubcom immediately so we can address theproblem
If you dialed in and have any difficulties during the call press 0 for assistance
NOTE If you are seeking CPE credit you must listen via your computer mdash phonelistening is no longer permitted
Viewing QualityTo maximize your screen press the F11 key on your keyboard To exit full screenpress the F11 key again
FOR LIVE EVENT ONLY
Sound QualityIf you are listening via your computer speakers please note that the qualityof your sound will vary depending on the speed and quality of your internet connection
If the sound quality is not satisfactory you may listen via the phone dial1-866-328-9525 and enter your PIN when prompted Otherwise pleasesend us a chat or e-mail soundstraffordpubcom immediately so we can address theproblem
If you dialed in and have any difficulties during the call press 0 for assistance
NOTE If you are seeking CPE credit you must listen via your computer mdash phonelistening is no longer permitted
Viewing QualityTo maximize your screen press the F11 key on your keyboard To exit full screenpress the F11 key again
Continuing Education Credits
In order for us to process your continuing education credit you must confirm yourparticipation in this webinar by completing and submitting the AttendanceAffirmationEvaluation after the webinar
A link to the Attendance AffirmationEvaluation will be in the thank you email that youwill receive immediately following the program
For CPE credits attendees must participate until the end of the QampA session andrespond to five prompts during the program plus a single verification code In additionyou must confirm your participation by completing and submitting an AttendanceAffirmationEvaluation after the webinar and include the final verification code on theAffirmation of Attendance portion of the form
For additional information about continuing education call us at 1-800-926-7926 ext35
FOR LIVE EVENT ONLY
In order for us to process your continuing education credit you must confirm yourparticipation in this webinar by completing and submitting the AttendanceAffirmationEvaluation after the webinar
A link to the Attendance AffirmationEvaluation will be in the thank you email that youwill receive immediately following the program
For CPE credits attendees must participate until the end of the QampA session andrespond to five prompts during the program plus a single verification code In additionyou must confirm your participation by completing and submitting an AttendanceAffirmationEvaluation after the webinar and include the final verification code on theAffirmation of Attendance portion of the form
For additional information about continuing education call us at 1-800-926-7926 ext35
Pre-ImmigrationIncome amp Estate
Tax Planning
PART OF THE LEHMAN TAX LAWKNOWLEDGE BASE SERIES
ByRichard S Lehman Esq
TAX ATTORNEYwwwLehmanTaxLawcom
Richard S Lehman Esqbull Masters in Tax Law from New York University Law Schoolbull US Tax Court and Internal Revenue Service experience in Washington DC
Richard Lehman regularly works with law firms accountants businesses andindividuals struggling to find their way through the complexities of the US tax lawIn short Lehman is a valuable resource to each of these audiences
With over 46 years as a tax lawyer in Florida Lehman has built a national reputation forbeing able to handle the toughest tax cases structure the most sophisticated incometax and estate tax plans and defend clients before the IRS
bull Mr Lehmanrsquos international practice spans the globe This has resulted inLehmanrsquos representation of foreign investors giving tax and practical advice inacquiring and selling a wide range of commercial businesses and other USinvestment assets This includes not only the acquisition and sale of activebusinesses in the US but also investments in all fields of real estate includingraw land shopping centers commercial office buildings condominiumsresidential apartments residential homes and the like
LEHMAN TAX LAW KNOWLEDGE BASE SERIES55
bull Masters in Tax Law from New York University Law Schoolbull US Tax Court and Internal Revenue Service experience in Washington DC
Richard Lehman regularly works with law firms accountants businesses andindividuals struggling to find their way through the complexities of the US tax lawIn short Lehman is a valuable resource to each of these audiences
With over 46 years as a tax lawyer in Florida Lehman has built a national reputation forbeing able to handle the toughest tax cases structure the most sophisticated incometax and estate tax plans and defend clients before the IRS
bull Mr Lehmanrsquos international practice spans the globe This has resulted inLehmanrsquos representation of foreign investors giving tax and practical advice inacquiring and selling a wide range of commercial businesses and other USinvestment assets This includes not only the acquisition and sale of activebusinesses in the US but also investments in all fields of real estate includingraw land shopping centers commercial office buildings condominiumsresidential apartments residential homes and the like
Pre-ImmigrationIncome Tax Planning
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
66
What is Pre-ImmigrationIncome Tax Planning
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
77
Pre-ImmigrationIncome Tax Planning
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
88
Pre-ImmigrationIncome Tax Planning
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
99
Definition for Tax Purposes
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1010
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Continuing Education Credits
In order for us to process your continuing education credit you must confirm yourparticipation in this webinar by completing and submitting the AttendanceAffirmationEvaluation after the webinar
A link to the Attendance AffirmationEvaluation will be in the thank you email that youwill receive immediately following the program
For CPE credits attendees must participate until the end of the QampA session andrespond to five prompts during the program plus a single verification code In additionyou must confirm your participation by completing and submitting an AttendanceAffirmationEvaluation after the webinar and include the final verification code on theAffirmation of Attendance portion of the form
For additional information about continuing education call us at 1-800-926-7926 ext35
FOR LIVE EVENT ONLY
In order for us to process your continuing education credit you must confirm yourparticipation in this webinar by completing and submitting the AttendanceAffirmationEvaluation after the webinar
A link to the Attendance AffirmationEvaluation will be in the thank you email that youwill receive immediately following the program
For CPE credits attendees must participate until the end of the QampA session andrespond to five prompts during the program plus a single verification code In additionyou must confirm your participation by completing and submitting an AttendanceAffirmationEvaluation after the webinar and include the final verification code on theAffirmation of Attendance portion of the form
For additional information about continuing education call us at 1-800-926-7926 ext35
Pre-ImmigrationIncome amp Estate
Tax Planning
PART OF THE LEHMAN TAX LAWKNOWLEDGE BASE SERIES
ByRichard S Lehman Esq
TAX ATTORNEYwwwLehmanTaxLawcom
Richard S Lehman Esqbull Masters in Tax Law from New York University Law Schoolbull US Tax Court and Internal Revenue Service experience in Washington DC
Richard Lehman regularly works with law firms accountants businesses andindividuals struggling to find their way through the complexities of the US tax lawIn short Lehman is a valuable resource to each of these audiences
With over 46 years as a tax lawyer in Florida Lehman has built a national reputation forbeing able to handle the toughest tax cases structure the most sophisticated incometax and estate tax plans and defend clients before the IRS
bull Mr Lehmanrsquos international practice spans the globe This has resulted inLehmanrsquos representation of foreign investors giving tax and practical advice inacquiring and selling a wide range of commercial businesses and other USinvestment assets This includes not only the acquisition and sale of activebusinesses in the US but also investments in all fields of real estate includingraw land shopping centers commercial office buildings condominiumsresidential apartments residential homes and the like
LEHMAN TAX LAW KNOWLEDGE BASE SERIES55
bull Masters in Tax Law from New York University Law Schoolbull US Tax Court and Internal Revenue Service experience in Washington DC
Richard Lehman regularly works with law firms accountants businesses andindividuals struggling to find their way through the complexities of the US tax lawIn short Lehman is a valuable resource to each of these audiences
With over 46 years as a tax lawyer in Florida Lehman has built a national reputation forbeing able to handle the toughest tax cases structure the most sophisticated incometax and estate tax plans and defend clients before the IRS
bull Mr Lehmanrsquos international practice spans the globe This has resulted inLehmanrsquos representation of foreign investors giving tax and practical advice inacquiring and selling a wide range of commercial businesses and other USinvestment assets This includes not only the acquisition and sale of activebusinesses in the US but also investments in all fields of real estate includingraw land shopping centers commercial office buildings condominiumsresidential apartments residential homes and the like
Pre-ImmigrationIncome Tax Planning
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
66
What is Pre-ImmigrationIncome Tax Planning
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
77
Pre-ImmigrationIncome Tax Planning
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
88
Pre-ImmigrationIncome Tax Planning
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
99
Definition for Tax Purposes
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1010
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Pre-ImmigrationIncome amp Estate
Tax Planning
PART OF THE LEHMAN TAX LAWKNOWLEDGE BASE SERIES
ByRichard S Lehman Esq
TAX ATTORNEYwwwLehmanTaxLawcom
Richard S Lehman Esqbull Masters in Tax Law from New York University Law Schoolbull US Tax Court and Internal Revenue Service experience in Washington DC
Richard Lehman regularly works with law firms accountants businesses andindividuals struggling to find their way through the complexities of the US tax lawIn short Lehman is a valuable resource to each of these audiences
With over 46 years as a tax lawyer in Florida Lehman has built a national reputation forbeing able to handle the toughest tax cases structure the most sophisticated incometax and estate tax plans and defend clients before the IRS
bull Mr Lehmanrsquos international practice spans the globe This has resulted inLehmanrsquos representation of foreign investors giving tax and practical advice inacquiring and selling a wide range of commercial businesses and other USinvestment assets This includes not only the acquisition and sale of activebusinesses in the US but also investments in all fields of real estate includingraw land shopping centers commercial office buildings condominiumsresidential apartments residential homes and the like
LEHMAN TAX LAW KNOWLEDGE BASE SERIES55
bull Masters in Tax Law from New York University Law Schoolbull US Tax Court and Internal Revenue Service experience in Washington DC
Richard Lehman regularly works with law firms accountants businesses andindividuals struggling to find their way through the complexities of the US tax lawIn short Lehman is a valuable resource to each of these audiences
With over 46 years as a tax lawyer in Florida Lehman has built a national reputation forbeing able to handle the toughest tax cases structure the most sophisticated incometax and estate tax plans and defend clients before the IRS
bull Mr Lehmanrsquos international practice spans the globe This has resulted inLehmanrsquos representation of foreign investors giving tax and practical advice inacquiring and selling a wide range of commercial businesses and other USinvestment assets This includes not only the acquisition and sale of activebusinesses in the US but also investments in all fields of real estate includingraw land shopping centers commercial office buildings condominiumsresidential apartments residential homes and the like
Pre-ImmigrationIncome Tax Planning
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
66
What is Pre-ImmigrationIncome Tax Planning
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
77
Pre-ImmigrationIncome Tax Planning
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
88
Pre-ImmigrationIncome Tax Planning
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
99
Definition for Tax Purposes
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1010
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Richard S Lehman Esqbull Masters in Tax Law from New York University Law Schoolbull US Tax Court and Internal Revenue Service experience in Washington DC
Richard Lehman regularly works with law firms accountants businesses andindividuals struggling to find their way through the complexities of the US tax lawIn short Lehman is a valuable resource to each of these audiences
With over 46 years as a tax lawyer in Florida Lehman has built a national reputation forbeing able to handle the toughest tax cases structure the most sophisticated incometax and estate tax plans and defend clients before the IRS
bull Mr Lehmanrsquos international practice spans the globe This has resulted inLehmanrsquos representation of foreign investors giving tax and practical advice inacquiring and selling a wide range of commercial businesses and other USinvestment assets This includes not only the acquisition and sale of activebusinesses in the US but also investments in all fields of real estate includingraw land shopping centers commercial office buildings condominiumsresidential apartments residential homes and the like
LEHMAN TAX LAW KNOWLEDGE BASE SERIES55
bull Masters in Tax Law from New York University Law Schoolbull US Tax Court and Internal Revenue Service experience in Washington DC
Richard Lehman regularly works with law firms accountants businesses andindividuals struggling to find their way through the complexities of the US tax lawIn short Lehman is a valuable resource to each of these audiences
With over 46 years as a tax lawyer in Florida Lehman has built a national reputation forbeing able to handle the toughest tax cases structure the most sophisticated incometax and estate tax plans and defend clients before the IRS
bull Mr Lehmanrsquos international practice spans the globe This has resulted inLehmanrsquos representation of foreign investors giving tax and practical advice inacquiring and selling a wide range of commercial businesses and other USinvestment assets This includes not only the acquisition and sale of activebusinesses in the US but also investments in all fields of real estate includingraw land shopping centers commercial office buildings condominiumsresidential apartments residential homes and the like
Pre-ImmigrationIncome Tax Planning
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
66
What is Pre-ImmigrationIncome Tax Planning
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
77
Pre-ImmigrationIncome Tax Planning
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
88
Pre-ImmigrationIncome Tax Planning
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
99
Definition for Tax Purposes
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1010
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Pre-ImmigrationIncome Tax Planning
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Very often the immigrating person is going to be a successfulperson who has earned money outside of the United Statesfor a great part of their life and now will come to the UnitedStates and continue to be productive
66
What is Pre-ImmigrationIncome Tax Planning
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
77
Pre-ImmigrationIncome Tax Planning
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
88
Pre-ImmigrationIncome Tax Planning
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
99
Definition for Tax Purposes
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1010
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
What is Pre-ImmigrationIncome Tax Planning
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
We are talking about an individual who is presently an alienindividual who is going to become a US tax resident for federalincome tax purposes
Once that happens they are subject to tax on theirworldwide income They may also become US residents forestate tax purposes This means if they were to die in the USthere might be something like an ldquoinheritance taxrdquo on wealthtransferred at death to beneficiaries We will discuss all of this
77
Pre-ImmigrationIncome Tax Planning
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
88
Pre-ImmigrationIncome Tax Planning
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
99
Definition for Tax Purposes
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1010
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Pre-ImmigrationIncome Tax Planning
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The earnings that they have made outside of the United Statesbefore they became US citizens may be accrued earningsThey may have gains from the assets they own or income thatthey will not collect that is not going to show up until after thesepeople move to the United States
bull This is gains and wealth that has accrued before they come tothe US but they have not ldquorealized and recognizedrdquo(a tax term) their gain
88
Pre-ImmigrationIncome Tax Planning
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
99
Definition for Tax Purposes
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1010
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Pre-ImmigrationIncome Tax Planning
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
This seminar will discuss the tax planning techniques to preservesuch wealth earnings and fortunes that the US taxpayer who isimmigrating to the US has earned prior to their ldquotax residencyrdquoWe will examine how to avoid these traps
99
Definition for Tax Purposes
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1010
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Definition for Tax Purposes
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1010
Non Resident Alien vs Resident Alien
The Resident Alienbull Taxation on Worldwide Income Similar to Taxation on US
Citizensbull Tax Planning
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
TAXATION PATTERN
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1111
US Resident Alien (Tax Resident) - Subject to Taxation
1 Income Taxation - Worldwide Income
2 Estate Taxation - Worldwide Assets
3 Gift Taxation - Worldwide Assets
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
US Tax ResidentsFirst I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
First I will list the ways one becomes a US taxpayer and then we willdiscuss them in detail
1 MarriageOne can become a tax resident by becoming a US citizen by wayof marriage or naturalization
2 ElectionAn immigrant may elect to be taxed as a US resident by electingsuch status on their US tax return
3 Permanent ResidencyThe US may grant the right to permanent residency This is theissuance of a Green Card in the United States The greencardholder will be a US taxpayer
1212
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
US Tax Residents4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
4 US Tax ResidencyTime of Physical Presence in the United States
bullIndividuals who physically spend a certain amount of time in theUS can be subject to a US income Tax as tax residents who aretaxable on their worldwide incomebullThis can occur if one physically spends too much time in the USThis is known as the ldquoSubstantial Presence Testrdquo
However this Substantial Presence Test does not apply to certainindividuals that will fit into two exceptions to the ldquoSubstantial Presencerdquotest These exceptions will permit an alien individual to stay in theUS for a longer period of time than the time required by theldquoSubstantial Presencerdquo We will review these exceptions
1313
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
US Tax Residents
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
5 The Closer Connection ExceptionThe first exception is the Closer Connection Exception An alien whohas a ldquocloser connectionrdquo to a foreign country may stay for a longerperiod of time in the US without becoming a US taxpayer
6 Tax TreatiesIndividuals who are governed by a tax treaty between their homecountry and the United States may stay in the US even longer duringthe calendar year without becoming US tax residents This will beexplained later
1414
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
STATUS FOR TAX PURPOSES
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1515
Non-Resident Alien - Not a ldquoResident Alienrdquo
Resident for Income Tax Purposes
1 Green Card2 Substantial Presence Test3 Voluntary Election
Exceptions4 The Closer Connection5 Treaties Tie Breaker
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Income Tax ResidentsWersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Wersquore going to look first just at the income tax situation I will repeatwhat I said about US tax ratesbullOnce you become a US tax resident you are subject to incometax on your worldwide income like every other AmericanbullYou are subject to tax on the graduated ratesbullThe rates start at 15 on the first $36000 and go as high as396 for income over $250000 There is an additional tax oninvestment income of 38 or more than $200000bullThis is the US tax only and does not consider state and cityincome taxes Florida has no personal income taxbullA resident of New York City might have additional city incometaxes and New York state income taxes that total more than 10 inadditional tax
1616
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Substantial Presence Test
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1717
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
The Closer Connection Exception
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1818
An individual shall not be treated asmeeting the substantial presence test ofthis paragraph with respect to any currentyear if
(i) such individual is present in the UnitedStates on fewer than 183 days during thecurrent year and
(ii) it is established that for the current yearsuch individual has a tax home (as definedin section 911(d)(3) without regard to thesecond sentence thereof) in a foreigncountry and has a closer connection tosuch foreign country than to the UnitedStates
Exceptionwhere individualis present in the
United Statesduring less than
one-half ofcurrent year and
closer connectionto foreign country
is established
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
EXCEPTIONAL CIRCUMSTANCESAND SPECIAL BENEFITS
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
LEHMAN TAX LAW KNOWLEDGE BASE SERIES1919
StudentsA foreign student who has obtained the proper immigration status will be exemptfrom being treated as a US resident for US tax purposes even if he or she is herefor a substantial time period that would originally result in the student being taxed asa US resident
This student visa not only permits the student to study in the United States but topay taxes only on income from US sources not worldwide income
The visa also permits the students direct relatives to accompany the student to theUnited States and receive the same tax benefits
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
CitizenshipThe Ultimate Tie Breaker
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
An individual who has a habitual abode in both countries (or neither)is treated as a resident only of the country of his nationality If all ofthe other tiebreaker rules are even the final determination of taxresidency will depend on the citizenship
ldquoHe shall be deemed to be a resident of the Contracting Stateof which he is a citizenrdquo
Finally if the taxpayer is a citizen of both countries then it is left tothe tax authorities in both countries as to which country can claim thetaxpayer as the resident for tax purposes
2020
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Tax Treaty - Tie Breaker RulesWhere by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2121
Where by reason of the provisions of paragraph 1 an individualis a resident of both Contracting States then his status shall bedetermined as follows
(a)He shall be deemed to be a resident of the State in which he has a permanenthome available to him if he has a permanent home available to him in bothStates he shall be deemed to be a resident of the State with which his personaland economic relations are closer (center of vital interests)
(b)If the State in which he has his center of vital interests cannot be determined or ifhe does not have a permanent home available to him in either State he shall bedeemed to be a resident of the State in which he has an habitual abode
(c) If he has an habitual abode in both States or in neither of them he shall bedeemed to be a resident of the State of which he is a citizen
(d)If each State considers him as its citizen or if he is a citizen of neither of them thecompetent authorities of the Contracting States shall settle the question by mutualagreement
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Residency Starting Date
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2222
Substantial Presence TestResidency starting date for individuals meeting substantialpresence test In the case of an individual who meets thesubstantial presence test of paragraph (3) with respect to anycalendar year the residency starting date shall be the first dayduring such calendar year on which the individual is present inthe United States
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Residency Starting Date
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2323
Green CardResidency starting date for individuals lawfully admitted forpermanent residence In the case of an individual who is alawfully permanent resident of the United States at any timeduring the calendar year but does not meet the substantialpresence test of paragraph (3) the residency starting date shallbe the first day in such calendar year on which he was presentin the United States while a lawful permanent resident of theUnited States
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Four Tax PlanningPrinciples
Four Tax PlanningPrinciples
24
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
The Income Tax Objectives
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2525
A Acceleration of Gains - Non US Property
B Acceleration of Income from Foreign Sources
C Deferral of Loss Recognition
D Deferral of Payment of Deductible Expenses
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Four Tax Planning Principles
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2626
1 A Nonresident Alien prior to becoming a US tax resident willwant to make sure that he or she does not have to pay a UStax on gains that have accrued as a practical matter before theirresidency period The first strategy is to accelerate (realize andrecognize) any and all gains earned by the Taxpayer prior tobecoming a Resident Alien
2 The second key strategy is to accelerate income that isexpected to be paid after residency Income payments shouldbe collected prior to residency to avoid being taxed by the US
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Four Tax Planning Principles3 The third strategy is to defer recognizing a loss until after
obtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2727
3 The third strategy is to defer recognizing a loss until afterobtaining tax residency as a Resident Alien so that the loss canbe used against post residency gains Assets with a fair marketvalue below cost can be sold after residency Those lossesmay be taken against gains in assets earned after USresidency These losses can reduce or wipe out gains from thesale of assets that accrue after US residency
4 The fourth strategy is to defer paying deductible expenses untilafter the Residency Starting date Many types of payments(both business and personal) in the US are deductible from aUS Taxpayerrsquos income to determine the actual taxable amountof income
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Accelerate Gains Prior toResidency Starting Date
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2828
Assume a nonresident alien owned $10 Million Dollars worth ofshares of General Motors that was purchased for $50000 Ifthe shares are sold after US tax residency is assumed whenthe immigrant is a Resident Alien there will be a tax on$950000 in gains A sale of these same shares by aNonresident Alien before becoming a Resident Alien wouldresult in no taxable gain
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
LEHMAN TAX LAW KNOWLEDGE BASE SERIES2929
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Accelerate Income Prior toResidency Starting Date
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3030
For example assume a non resident alien owns a foreigncorporation that conducted a business in his home country that nowhas $2 Million in receivables that will not be collected until after theowner has become a Resident Alien for US tax purposes
These receivables might be accelerated for example by theliquidation of the taxpayerrsquos company and the transfer of thereceivables to the taxpayer at their present fair market value prior tothe Residency Starting Date
The taxpayer may also sell his interest in the company or to thecompany for a Promissory Note The ongoing foreign company maycollect the receivables which are then paid to the seller and NonResident Alien in payment of the Promissory Note he received to sellhis shares to the company
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Income Assets to Accelerate
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3131
bull Pension Plansbull Stock Optionsbull Prepaid Rentbull Repaid Royaltiesbull Prepaid Dividendsbull Prepaid Interestbull Annuity Products
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Defer Recognizing Loss
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3232
bull In todayrsquos times there are many wealthy immigrants coming to the USwho have significant losses in their investment portfolios from the lastfew years If it is economic these portfolios should not be liquidatedand losses should not be realized and recognized prior to immigrationto the US as they can be extremely valuable to use against capitalgains in the US and even against ordinary income in the US undercertain circumstances
ndash Assume the same taxpayer who bought General Motors stock in the priorexample purchased the stock at $1000 and now it was only worth $500
ndash In the event the investor were to sell his stock at a loss prior to becoming aResident Alien the loss is useless against other income Had the GeneralMotors stock been sold in the year of Residency there would be a tax losssince as a Resident Alien the taxpayer would pay a tax on all of hisworldwide net losses and gains
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
The Estate and Gift Tax
Not only does the United States charge an income tax on incomeearned in the United States it also charges on ldquoEstate and GiftTaxrdquo on people who become US tax residents and also onnonresident aliens but only on a few limited types of assets
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3333
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
The Estate and Gift Tax
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The US estate and gift tax is a tax on the ldquotransfer of wealthrdquo As we willdiscuss US tax residents who transfer wealth are subject to one standardthat is applied to their total wealth transferred if they die owning significantassets or if they transfer significant assets during life
We will see that there is a different standard applied in determining whether anon US citizen is subject to the estate and gift tax than the standard that appliesfor determining the amount of an immigrantrsquos income or capital gains tax
The US applies a transfer tax on the transfer of onersquos wealth by virtue ofdeath or lifetime gift It is similar to an inheritance tax that many countriescharge however it is a tax on the transferor and not the beneficiary
3434
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Estate TaxDefinition of Residency
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
LEHMAN TAX LAW KNOWLEDGE BASE SERIES3535
A ldquoresidentrdquo decedent is a decedent who at the time of his death hadhis domicile in the United States The term ldquoUnited Statesrdquo as used inthe estate tax regulations includes only the States and the District ofColumbia The term also includes the Territories of Alaska and Hawaiiprior to their admission as States See section 7701(a)(9) A personacquires a domicile in a place by living there for even a brief period oftime with no definite present intention of later removing thereforeResidence without the requisite intention to remain indefinitely will notsuffice to constitute domicile nor will intention to change domicile effectsuch a change unless accompanied by actual removal
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
US Taxpayers
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Now that theyrsquore Americans we have to make sure that they taketwo things into considerationThe first thing is that they need to know all of the rules of US taxpayerswho are taxed on their worldwide income They need to know inparticular how those rules affect their foreign businesses that many ofthem might still be keeping
bullThey need to have a real understanding on how to marry the twotogether because once they become a US tax resident they aresubject to the same rules as a US citizen
3636
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Tax Planning
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The bottom line is ndash if a nonresident alien becomes a US taxpayer andimmigrated here earned as a US taxpayer who owned a foreigncorporation that was earning that money in a business in a foreign landthere would be tax benefits availablebullThe principal tax benefit is that so long as a foreign corporation that earnsbusiness income did not distribute funds to the US taxpayer there wouldbe no immediate tax on those funds Therefore if the tax in the foreigncountry where the income was being earned is a low tax country thedeferment on the US tax on those earnings permits the new UStaxpayer to enjoy the pretax value of his or her earnings as they stay in theforeign corporation and continue to help that foreign corporation grow
3737
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Tax Exempt Bonds
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
The individual States that comprise the United States and Citiesand Municipalities in the US often will finance their capitalimprovements by issuing interest-bearing bonds in the bondmarket These investments are known as ldquotax exempt bondsrdquoSpecial treatment is available to help the states with their financingof operations This includes the right of states to issue bonds thatare paying interest to the bondholders however there is no USFederal taxes payable on the interest paid by those bondsThese bonds typically do not pay as high an interest rate as interestincome that is taxable
3838
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
US Real Estate InvestmentsAnother tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Another tax-oriented investment for the typical American investoris US real estate
Income producing US real estate that earns rental income fromproperties on which buildings have been erected are permitted a specialdeduction reducing their taxable rental income known as theldquodepreciation deductionrdquo Though it is typical for US real estate toincrease in value over the years the tax code considers the fact thatbuildings and personal property may deteriorate and lose their valuebecause of the wear and tear and deterioration on the asset
bullIn order to insure that the investor in real estate can recover their initialcapital investment free of tax there is an annual amount that is deductedfrom operating income even though there are no cash tax or otherpayments are made
3939
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Pensions amp Profit Sharing PlansTax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
Tax advantages are encouraged for people to provide for theirretirement in later years by investing funds in their own privatepensions and profits sharing plans
bull These funds are held in a trust and may be distributed years later to thetaxpayer that has funded those plans in preparation for their retirement
bull Investments in these types of plans will reduce any taxable income earnedby the foreign investor during the year in which they were paid into theplan
bull When the pension and profit sharing funds are eventually paid out a taxwill be paid on this income distributed to the investor
However often these amounts are paid out at a time when the retired investoris earning less money and consequently the taxation of these funds distributedfrom the pension and profit sharing plans may then be taxed in a lower taxbracket
4040
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Tax Return amp Information ReturnsIt is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
LEHMAN TAX LAW KNOWLEDGE BASE SERIES
It is important for the new US tax immigrant to understand that several forms mayneed to be filed with the US taxing authorities such as a United States tax returnand several forms known as ldquoInformation Returnsrdquo
These Information Returns are not tax returns however they are informationforms that will make the US knowledgeable about any continued foreign holdingsby the US taxpayer
Though no tax is required as a result of these Information Returns the US maycharge significant penalties if these foreign Information Returns are not filed withcomplete information and filed in a timely manner
bullThese forms help the Internal Revenue Service to make sure that US taxpayerswill pay tax on their income producing non US assetsbullThe failure to file these forms will result in financial penalties These penaltiescan range from minimum financial amounts to extremely expensive penalties
4141
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Pre-Immigration Income amp EstateTax Planning
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
LEHMAN TAX LAW KNOWLEDGE BASE SERIES4242
Richard S Lehman Esq6018 SW 18th Street Suite C-1Boca Raton FL 33433Tel (561) 368-1113Fax (561) 368-1349wwwLehmanTaxLawcomrlehmanlehmantaxlawcom
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
presents
Larry J BeharEB-5 Immigration Attorney
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
US Residency for Immigrant InvestorsUS Residency for Immigrant Investors44
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
Employment Based Fifth Preference Residency programEmployment Based Fifth Preference Residency program
45
Job Creation program
Congressionally supported
Capital + Job creation = US Residency
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
bull Raised in Montreal Canadabull Undergraduate degree from McGill Universitybull Civil law degree from the University of Montrealbull Common law education at Nova Southeastern University in Ft Lauderdale in 1979bull Representing entrepreneurs investors multinational companies professionals and familyreunificationsbull Chair of the Broward Alliance in 2004 in Economic Developmentbull Author ldquoHow to Immigrate to the USArdquo in three languages ldquoEB-5 United StatesImmigration through Investmentrdquo available in six (6) languagesbull Advisor and legal counsel to thirty (30) Regional Centers and projects throughout theUnited States in all various sectorsbull Member Florida Bar since 1979bull AV Pre-Eminent Rated Martindale Hubbell
46
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
47
bull Born in Caracas Venezuela and educated in the United Statesbull Bachelor of Business Administration Degree (cum laude) in 1992bull Juris Doctor Degree in 1995 from the University of Miamibull Admitted to the State of Florida Bar as well as to the United States District Court for the SouthernDistrict of Floridabull Specializes in complex cases involving US immigration and nationality issues with emphasis oncorporate and compliance issuesbull All business as well as US citizenship and nationality as well as navigating the visa process atembassies and consulates throughout the world family immigration mattersbull Application process for regional center designation amendments and compliance matters related tothe firmrsquos EB-5 practicebull Lectured and made presentations to groups and organizations and answered numerous questions ontopics related to immigration lawbull Has also contributed numerous hours of pro bono legal services to victims of domestic violencethrough the Legal Aid Service of Broward Countybull Fluent in the English Spanish and Hebrew languages
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
bull Multilingual international attorney focusing her practice on Business Immigrationbull Behar Law Group Associate since November 2015bull Italian native has extensive knowledge of both civil and common lawbull Ms Oliveri graduated with honors in Italy from Univeristarsquo degli Studi Roma III Facoltarsquodi Giurisprudenza in 2013bull Awarded a double JD pursuant to a partnership between Roma III and NovaSoutheastern University Shepard Broad College of Lawbull Second Juris Doctor degree in the US Cum Laude from Nova Southeastern UniversityShepard Broad College of Law Florida in 2015bull Admitted to practice in Florida since September 2015bull Fluent in Italian English Farsi Spanish French and Portuguese Her multilingual andmulticultural background is perfectly suited to handle complex immigration cases
48
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Nicole SankarGreen Card Media
ManagerPort of Spain Trinidad
Hailing ChenLegal AssistantShanghai China
Irene CrawfordExecutive AssistantMontreal Canada
49
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
VIP CLIENT
LARRY J BEHARSenior Attorney
larryeb-5lawyerscomIRENE CRAWFORDExecutive Assistant
ireneeb-5lawyerscom
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
LEA SALAMA DIMITRIAttorney
leaeb-5lawyerscom
LawLogix
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
SONIA OLIVERIAttorney
soniaeb-5lawyerscom
50
DREAM TEAM 1LegalImmigrationBusiness Plan SecuritiesAccountants BankersAuxiliary Services MarketingFinancial Director Economist
NICOLE SANKAREB-5 Compliance
AdministratorClient Relations
nikkieb-5lawyerscom
HAILING CHENEB 5 Investor Coordinatorhailingeb-5lawyerscom
DREAM TEAM 2Investor SourcingIncentivesLegal - CorporateLegal - EB-5Business Plan
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
bull Created in 1990 by US Congress
bull Mandated and monitored by USCIS
bull Intended the program to create jobs for Americans and tostimulate domestic investment
bull Opportunity for qualified foreign nationals to becomepermanent residents in the US
51
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
bull Children Education
bull Security
bull Health
bull Political amp Economic challenges
bull Exit strategy
bull Good Management
bull NO Language restrictions
52
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
A specific territory within the United States andterritories wherein specific economic and North AmericaIndustrial codes are reviewed and approved by CIS foreconometric and business compliance This is part of the1995 Pilot Program allowing indirect jobs modelling
53
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
Individual Applicationbull Investor needs to create 10 Direct jobs within 2 years of
(Commercial enterprise creation) conditional residency approval
Pilot Programbull Regional center with approved Economic amp Business Plans uses
direct and indirect job creation modelling
54
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
bull Safety of investment through qualified business and economicplans
bull Projected return of principal through exit strategy
bull Fair rate of return during investment period from skilledmanagement
bull US education for all minor children below 21 years of age included
bull Personal financial commitment in the EB-5 program by the sponsorand investor
bull Automatic Healthcare benefits upon arrival to the US
bull Personal and Family Security in America
55
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
A defined or multiple census tracts which bydefinition contain 50 of the national average ofunemployment or a rural community no greater thana 20000 person population
56
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
bull 83 of used EB-5 visas annuallybull Retrogression in effect through State
Department amp Visa Officebull Continued strong demand due to limited
alternatives
57
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Developerbull Investorbull Agentbull Project Financing
58
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
bull Migration Agentsbull Attorneyrsquosbull Banksbull Escrow Agentsbull Developersbull Investorsbull Business Plan Writersbull Economists
59
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
bull InvestorApplicant choice once approvedbull Frequency of US visitsbull Adjustment of status employment authorization
travel permit in the USbull Consulate selection through National Visa Center
60
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
Non-Immigrantbull L-1 multinational Executives or Managers transferring
from foreign companybull E-2 non-immigrant investors visas with lower financial
threshold not permanent
Immigrantbull PERMLabor certifications for skilled labor employment
basedbull Family petitions and reunificationsbull Extraordinary ability or US national interest
61
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
bull Developers of EB-5 Regional Centers
bull EB-5 Express Project Developers (direct jobs only)
bull Applicant Investors for processing
bull Existing qualified Regional Centers and Projects
62
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
bull Green card benefits for investor and immediate family
bull 10000 visas annually No country restrictions to qualified investorsand family
bull US Travel Ease no further visa needed
bull Synchronized processing to ensure timely delivery of conditional andfull residency US Citizenship optional
bull US Income Gift amp Estate Tax consequences Pre immigration taxplanning
bull NO language restrictions
63
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
NYC South Florida
Idaho California
Atlanta
South Florida
NYC NYC
Ohio
64
Mississippi New York FloridaFlorida
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
65
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
helliphellip Banking
helliphellip Corporate
helliphellip Entertainment
66
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Children can attend any Public or Private school or Universityanywhere in the US at US Resident rates
Harvard Law SchoolBoston MA
Georgetown UniversityWashington DC
67
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
bull Valid passport of home country
bull Global net worth greater than $1Mlnor
bull Income Greater than $20000000 in last two years
bull Legal and Identifiable Source of Investment Funds
bull No criminal record
bull Independent Legal amp Advisory Counsel optional
bull Verifiable tax returns for past five years or alternatives
68
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Filing for children with parent investor if child isless than 21 years old
bull Waiting period and Consular calculation
69
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
70
bull Review of Offering Prospectus and exhibits
bull All nationalities may qualify
bull Availability of investment funds in 60 days
bull Spouse and children (unmarried) under 21 years of age attime of filing
bull Intent to lsquoresidersquo in the US
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
bull Capitol presentationbull Liftingbull US Income Taxbull Estate considerationsbull Foreign country exit taxesbull Personal asset capital gain amp appreciation
71
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
bull Dropboxbull Worksheetbull Going backward 2 levels
Business Sales Inheritances
bull Location of Fundsbull Bank Transfers
72
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
bull Loans
bull Cash
bull Gifts
bull Inheritance
bull Stock or asset salebullbull Savings
bull Business sale
bull Security backed loan
73
Note Funds are verified in the US by qualified CPArsquos
(through September 30th 2016 pending increase to $80000000)
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Document Assembly 1 MonthFiling for Conditional Residency I-526 2 MonthsAdjustment of Status or Consular visit 14 MonthsVisa Entry (tax trigger) Port of Entry
74
NOTE all dates are approximate depending on Government action
Visa Entry (tax trigger) Port of EntryEvidence of Job Creation ndash I-829 21st MonthLifting of Conditional Status 24th Month
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
bull USCIS amp EB-5 unit in Washington DCbull Backlog of casesbull Government continuing resolutionsbull SEC fraud amp Compliance issuesbull Market instabilitybull Investment threshold increases to $800000 or
$12Mlnbull Redefinitions of Targeted Employment Areas
75
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
Economic Impacts of EBEconomic Impacts of EB--5 Spending5 Spendingbull EB-5 Investors contributed
bull $12 billion to US GDP and supported over 80000 US jobs
bull Top Industries impacted by EB-5 spending Construction Hotels Hospitality Assisted Living Private School Mixed Use Student Housing
bull helliphellipif all 10000 visas are used and I-526 demand stays at 20102011 levels $14 BillionFederalstatelocal taxes would be generated by the EB-5 program annually
bull helliphellipif all 10000 visas are used and I-526 demand stayed at 20102011 levels 166000+American jobs would be supported by the EB-5 program annually
bull helliphellipif all 10000 visas are used 83000 American jobs would be created by the EB-5program annually whenndash at no cost to the US taxpayer
Source IIUSA Vol Issue 3 October 2013 Source IIUSA Vol3 Issue 2 July 2015
76
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
What type of investments are EB-5 Investors looking forHotel Assisted Living Student Housing Real Estate based reasonable Developer Equity
What is the new role of the Securities Exchange Commission (SEC)Increasing scrutiny and reliance on Broker Dealers both in the US and abroad
What is the new role of the new lsquoJobs ActrdquoAbility of Broker Dealers to market Securities to accredited Foreign Investors in the US
What is the attitude of Congress toward EB-5 LegislationHigh support in Senate and House likely revalidation or permanent extension
What is the market demand for EB-5Full quota expected Little market competition from other countries such as Canada
As an Investor how can I participate in the EB-5 programIdentify and assess with US qualified job creating projects anywhere in the US work withqualified Counsel
77
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
ldquoEB-5 United States Immigration through InvestmentrdquoAvailable in English Mandarin Korean Portuguese Spanish
78
Strategic PartnersStrategic Partners
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
79
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
Behar Law Group
Larry J Behar EB-5 Attorney888 SE Third Avenue Ste 400Fort Lauderdale Florida 33316
Tel +1 (954) 524 8888Fax +1 (954) 524 0088
Emaillarryeb-5lawyerscominfoeb-5lawyerscom
Websitewwweb-5lawyerscom
wwwimmigrationfloridacom
80