Understanding how EB-5 funding fits into a project’s capital stack is essential for investors and developers alike. Whether used as senior debt, mezzanine financing, or preferred equity, each structure offers different levels of risk, return, and flexibility. Learn how these funding roles shape investment outcomes and project success.
Tax Implications for EB-5 Investors: What You Need to Know Before Tax Day
As April 15 approaches, EB-5 investors may wonder what U.S. tax obligations apply to them. While the U.S. Tax Code is lengthy, only select sections impact EB-5 participants. This guide breaks down everything from Tax Identification Numbers (TINs) to Schedule K-1 filings, phantom income, year-end distributions, and how withholding works based on investor residency status. Stay informed and avoid tax surprises by understanding your reporting responsibilities and when to consult a tax professional.
Understanding Aging Out for EB-5 Investors:
Many EB-5 investors apply with their children as dependents, but if a child turns 21 during processing, they may “age out” and lose eligibility. This article explains how the Child Status Protection Act (CSPA) helps preserve a child’s eligibility, how visa availability impacts it, and what families can do to avoid aging-out issues.
