U.S. Pre-Immigration Tax Planning

International Investors who receive an EB-5 Visa and a U.S. green card subject themselves to U.S. tax compliance, IRS audits and collections, and world-wide U.S. income, estate & gift tax on their annual income, gifts and estate (upon death) and disclosure of their world-wide assets annually i.e. foreign bank and financial accounts ($10k) and foreign financial assets ($50k). Although many international investors are aware that they face U.S. income tax liability (as U.S. income tax residents), very few understand that once they receive their U.S. green card they may be classified as having a U.S. domicile (and are then U.S. estate & gift tax residents) subject to U.S. estate and gift tax on their world-wide gifts and estates.

Expert, sophisticated U.S. income, estate & gift tax planning may exempt many investors from U.S. estate and gift tax on their world-wide assets, preclude 3rd party creditor attachments, exempt their annual investment earnings (e.g. interest, dividends, capital gains) from U.S. income tax, tax reporting (and minimize IRS tax audit risk). For those investors who seek the greatest net after-tax return and do not wish to pay a 40% U.S. estate/gift tax and up to 55% U.S. (California) “blended rate income tax” (i.e. federal/state income tax plus 3.8% Medicare surtax on net investment income) it is both prudent and wise to precede their U.S. immigration with a comprehensive U.S. tax planning strategy to pay their minimum (not maximum) fair share of U.S. taxes.