EB-5 Investor Fund and Regional Center Services Pre-Immigration Tax Planning Services

Transcription

1 EB-5 Ivestor Fud ad Regioal Ceter Services Pre-Immigratio Tax Plaig Services Discover the Differece

2 Raked amog the top 20 firms i the atio 1,300 professioals, icludig more tha 160 parters, i major market locatios FirmProfile Marcum llp is oe of the largest idepedet public accoutig ad advisory services firms i the atio. Raked amog the top 20, Marcum llp offers the resources of 1,300 professioals, icludig over 160 parters, i 23 offices throughout New York, New Jersey, Massachusetts, Coecticut, Rhode Islad, pesylvaia, Califoria, Florida, Grad Cayma ad Chia. Headquartered i New York City, the Firm's presece rus deep with full-service offices strategically located i major busiess markets. 60-year history with a outstadig reputatio at the atioal ad regioal levels Foudig member of the leadig Edge Alliace, a worldwide group of large, idepedet accoutig practices Established i 1951, Marcum is a leader with a outstadig reputatio at the atioal ad regioal levels. Marcum is raked as oe of the largest firms i the New York metropolita area (Crai s New York Busiess), the greater Philadelphia regio (Philadelphia Busiess Joural), the New Eglad regio (Bosto Busiess Joural) ad the Southeast (South Florida Busiess Joural). Marcum offers a extesive rage of professioal services ad a high degree of specializatio. I additio to traditioal accoutig, assurace ad tax, icludig domestic ad iteratioal tax plaig ad preparatio, the Firm s professioal services iclude EB-5 services, mergers ad acquisitio plaig, family office services, foresic accoutig, busiess valuatio ad litigatio support. The Firm has developed several iche practice areas servig private equity parterships; hedge fuds; SEC registrats; real estate; govermet, public ad ot-for-profit sectors; maufacturig; costructio; healthcare; ad bakruptcies ad receiverships; as well as a Chia specialty practice. Marcum professioals combie practical kowledge with years of experiece to provide a level of uderstadig ad service that is uique amog professioal service firms. The Firm takes a team approach to every egagemet, esurig the highest degree of techical kowledge, experiece ad uderstadig of curret issues ad regulatory matters. I additio, as a foudig member of The Leadig Edge Alliace, a worldwide group of large, idepedet accoutig practices, the Firm s professioals have added access to a wide rage of idustry ad service specializatio. Marcum is a member of the Marcum Group, a orgaizatio providig a comprehesive rage of professioal services spaig accoutig ad advisory, techology solutios, wealth maagemet, ad executive ad professioal recruitig. The Marcum Group compaies iclude Marcum LLP; Marcum Berstei & Pichuk LLP; MarcumBuchaa Associates LLC; Marcum Crous Parters LLC; Marcum Fiacial Services LLC; Marcum Search LLC; ad Marcum Techology LLC. For more iformatio, visit Page 1

3 Source of Fuds ad Path of Fuds Seekig classificatio as a immigrat ivestor uder the employmet based fifth preferece category, also kow as EB-5, carries a evidetiary burde o the ivestor. A itegral part of the submissio for coditioal residecy is that the petitio must demostrate the source ad the path of the fuds used i the ivestmet structure. This report is referred to as the Source of Fuds Report or SOF Report. The EB-5 regulatios require the ivestor to prove that the ivested capital was obtaied through lawful meas. The USCIS (US Citizeship ad Immigratio Services) requires a detailed report (1) showig how the ivestor obtaied the fuds used for the ivestmet ad (2) providig a clearly documeted path of fuds from the origial source to the commercial eterprise s bak accout. For example, lawful sources of fuds are persoal savigs, iheritace, a persoal loa, a gift, or sale of a asset, etc. There is o sigle favored source; however whatever the source, it must be fully supported with as much third party documetatio as possible. A mere declaratio that the fuds were lawfully obtaied will ot suffice. EB-5 ivestors past icome is also a factor used by the USCIS i its evaluatio of the EB-5 ivestor s coditioal residecy petitio. Icome tax records should be submitted for a miimum of five years. I additio to supportig the Source of Fuds Report the EB-5 ivestor s icome tax returs will also assist i provig a patter of icome. A patter of icome helps support situatios where a ivestor may ot have eared a substatial aual icome i recet years but accumulated the fuds over time. A equally importat part of the documetatio process is the path of fuds. This meas that the flow of fuds must be idetified, lawful, ad documeted. The path of fuds will demostrate where the fuds origiated ad how they ultimately arrived i the US ivestmet escrow accout. Retaiig a certified public accoutat, both i the ivestor s home coutry ad i the Uited States, is highly recommeded ad will esure full compliace for reportig purposes. Marcum has the resources available to provide this service to ivestors. Marcum ca assist the EB-5 ivestor i gatherig all of the data ecessary to prepare the Source of Fuds Report. This process will iclude completig a iterview questioaire that will be provided to a local Marcum office or Leadig Edge Affiliate i the ivestor s home coutry. The iterview questioaire will request from the ivestor all the ecessary data required by the US govermet. Marcum will the review this data prior to submissio i order to ascertai its completeess ad accuracy. Marcum will also coordiate with ad assist the ivestor's immigratio attorey to make sure that the immigratio process proceeds as seamlessly as possible. Page 2

4 EB-5 Fud ad Regioal Ceter Services Idepedet CPA firm reportig - Fiacial Statemets Iteratioal tax services for ledig fud icludig IRS ad state tax compliace filigs Moitorig gree card process ad tax effect o ledig fud Outsourced accoutig services Assist Regioal Ceter ad ledig fud i desig of accoutig system icludig iteral cotrols Assist maagemet with compliace applicable to EB-5 Regioal Ceter reportig ad admiistrative requiremets set by USCIS. Review of fiacial pro-forma ( budgets ad assumptios ) Fiacial reportig to ivestors pertaiig to the trasfer of fuds ito ledig fud Page 3

5 Pre-Immigratio U.S. Tax Services Before you become a residet of the Uited States there may be a opportuity to miimize exposure to Uited States icome, gift ad estate taxes. INCOME TAX The Uited States taxes its citizes ad residets o their worldwide icome. Prior to becomig a tax residet, the Uited States oly imposes a tax o icome from U.S. sources. A example of U.S. source icome icludes icome from a U.S. trade or busiess or from a U.S. retal property. Prior to becomig a U.S. tax residet there is the opportuity to accelerate icome or obtai a step up i basis so that U.S. tax exposure is miimized. Also, it may be advatageous to delay recogizig losses or deductios util the time oe becomes a U.S. tax residet. The U.S. has a favorable 20% tax rate o log term capital gais (gais o property held for more tha oe year). Icome o ordiary rates is subject to graduated rates up to 39.6%. Also, certai ivestmet icome is subject to a additioal 3.8% tax resultig i a overall top federal rate of 43.4%. I additio to the federal tax there are state ad local icome taxes. The state ad local tax rates vary by state. Some states (like Florida) do ot impose a state icome tax. A perso who acquires a gree card (eve a coditioal gree card) is treated as a icome tax residet the miute that the perso arrives i the Uited States. A perso ca also become a tax residet by beig physically preset i the Uited States for more tha 183 days over a three year testig period. ESTATE AND GIFT TAX The Uited States taxes U.S. citizes o gifts made durig their lifetimes ad o their property, wherever located, whe they die. Residecy for estate tax purposes is based o itet to remai i the U.S. ad takig ito cosideratio all the facts ad circumstaces. Thus, it is possible to become a residet for U.S. estate ad gift tax before obtaiig a gree card. The estate tax rate for 2013 is up to 40%. The data oted below will eable us to provide you with plaig recommedatio o how to reduce your exposure to U.S. icome, estate ad gift taxes prior to obtaiig U.S. residecy status for icome ad estate/gift tax purposes. Idividual tax plaig Icome recogitio should be accelerated prior to US tax residecy whereas losses should be deferred util after US tax residecy. Expeses should be delayed util after US tax residecy. Obtai relevat tax ID umbers for idividuals ad their family members. Educate the ivestor ad family regardig US tax law. Creatio, implemetatio, ad maagemet of US orgaizatioal structure Create tax efficiet structures that are efficiet ad operatioally feasible. Creatig fiacig structures for iitial ad ogoig operatios. Perform due diligece o ivestmets ad operatios. Assist i formatio of legal etities, bak accouts ad cotractual agreemets. Maage all relevat tax filig requiremets. Reorgaizatio of curret corporate operatios (Foreig/US) Evaluate the tax cosequeces of the curret corporate structure. Restructure operatios for reduced taxatio i US. Restructure operatios for more efficiet tax filigs i US. Maage all relevat tax filig requiremets. Overall corporate operatios Itegrate foreig ad US corporate operatios ito a efficiet ad maageable structure. Evaluate iterplay betwee foreig ad US corporate tax issues i order to reduce the overall worldwide tax expese. Estate Plaig: Aalyze curret worldwide assets i order to determie the most efficiet owership structure. Miimize assets i estate by creatig a asset structure through corporate etities ad/or trusts. Giftig of assets prior to immigratio i order to reduce size of taxable estate. Page 4

6 1. Your Idetifyig Iformatio a. Name (please use full legal ame as appears o passport ad provide a photocopy): b. Date ad place of birth: c. Is Eglish your primary laguage? If ot, please list: d. Primary mailig address outside of the Uited States: e. Primary mailig address iside the Uited States: f. Persoal address: g. Phoe umber (Home/Cell): h. Coutries i which you have citizeship: i. Coutries i which you have filed a persoal tax retur as a residet withi the past three years: j. Your Social Security Number/U.S. Tax idetificatio Number (if ay): k. Number of days spet i the U.S. icludig dates of arrival ad departure durig 2013:, 2012:, 2011: l. Expected marital status at the ed of the curret year: m. Has ayoe i your immediate family filed a U.S. Tax retur i the past?: Page 5

7 2. Idetifyig Iformatio for family members. (If more space eeded, please use additioal pages at the ed of the documet) Spouse Child#1 Child#2 a. Name(s): b. Date of Birth c. Place of Birth: d. Curret Address: e. Coutry of citizeship: f. Occupatio: g. Number of days spet (2013) i the U.S. durig the (2012) past 3 caledar years: (2011) 3. Professioal Advisors (Iside ad Outside Uited States) a. Please list attoreys who you are workig with or who have drafted last wills or trust documets: b. Please list the attorey(s) cotact iformatio: c. Please list ay accoutat(s) who have prepared your prior year tax retur(s): d. Please list the accoutat(s) cotact iformatio: 4. Asset(s)/Liabilities Detail a. Homes: i. Locatio: ii. Purchase date: iii. Title ower of house: iv. Approximate Curret Fair Market Value: v. Mortgage owed o home: Page 6

8 b. Bak Accout(s): i. Name of Bak Accout(s): ii. Locatio of Accout(s): iii. Title ower o Accout(s): iv. Approximate Value of Accout(s): c. Ivestmet/Brokerage Accout(s): i. Name of Fiacial Istitutio ad cotact perso: ii. Locatio of Accout(s) iii. Title ower o Accout(s): iv. Approximate Value of Accout(s): d. Retiremet/Pesio Accout(s): i. Name of Custodia: ii. Locatio of Accout(s): iii. Approximate Value of Accout(s): e. List ay bak accout(s) that you do t ow directly but which you have sigature authority or cotrol: i. Name of Fiacial Istitutio: ii. Locatio of Fiacial Istitutio: iii. Approximate Value of Accout(s): iv. Name of Accout Ower(s): v. Taxpayer Idetificatio Number of Accout Ower: vi. Address of Accout Ower(s): Page 7

9 f. Are there ay other assets (retal properties, auities, etc.) that you have: g. Compaies/Busiesses(if a foreig etity, please specify): i. Name of etity: ii. Type of etity (sole proprietorship, partership, corporatio, foudatio): iii. Taxpayer Idetificatio Number (if ay): iv. Percetage of owership by you: v. Percetage of owership by your spouse: vi. Locatio of compay ad locatio of books: vii. Pricipal busiess activity ad locatios: viii. Whe did busiess start ad coutry of icorporatig? ix. U.S. Shareholders (if ay): x. U.S. busiess activities (if less tha vii): h. Documets eeded: i. Tax retur(s) 1. Curret year ad 3 prior years (for all jurisdictios) a. Persoal b. Compaies c. Trust(s) ii. Trust Documets 1. Formatio documets iii. Compaies 1. Orgaizatioal structure chart showig owership ad percetages 2. Articles of icorporatio 3. Operatig agreemets 4. Related party agreemets/debt obligatios Page 8

10 The Leadig Edge Alliace NATIONAL AND INTERNATIONAL RESOURCES The Leadig Edge Alliace Marcum LLP is a member of The Leadig Edge Alliace, a atioal associatio comprised mostly of the largest Top 100 idepedetly owed CPA firms i the coutry. As a member, we ca draw upo the added expertise of a etwork of professioals throughout the Uited States as well as o a worldwide basis. Through The Leadig Edge Alliace, Marcum LLP is able to utilize resources from this etwork of firms, so we ca offer our cliets a wider base of resources. The Leadig Edge firms have offices i more tha 90 coutries with 445 offices ad ca service cliets through a global etwork of idepedet professioal service firms. Before ay firm is admitted as a member of The Leadig Edge Alliace it must udergo a rigorous peer review coducted by parters of other CPA firms. This selectio process allows The Leadig Edge to offer membership to oly the highest quality firms. LEA AFRICA & MIDDLE EAST FIRMS Bahrai Egypt Ghaa Israel Jorda Keya Kuwait Lebao Mauritius Morocco Nigeria Palestie Qatar Saudi Arabia Seegal South Africa Syria Tuisia Uited Arab Emirates Yeme LEA ASIA PACIFIC FIRMS Afghaista Australia Bagladesh Chia (P.R.) Idia Idoesia Japa Malaysia New Zealad Pakista Philippies Sigapore South Korea Sri Laka Taiwa Thailad Vietam LEA EUROPE FIRMS Albaia Austria Azerbaija Belgium Bosia ad Herzegovia Bulgaria Chael Islads Croatia Cyprus Demark Eglad Filad Frace Germay Greece Hugary Irelad Italy Kazakhsta Latvia Luxembourg Macedoia Malta Moldova Moteegro Netherlads Norway Polad Portugal Romaia Russia Federatio Scotlad Serbia Slovakia Spai Swede Switzerlad Turkey Ukraie LEA LATIN AMERICAN FIRMS Argetia Bolivia Brazil Cayma Islads Chile Colombia Costa Rica Domiica Republic Ecuador El Salvador Guatemala Hoduras Mexico Nicaragua Paama Paraguay Peru Uruguay Veezuela LEA NORTH AMERICA FIRMS Caada Uited States Page 9

11 Services AssurAce Marcum s Assurace divisio professioals provide a tailored audit approach to each egagemet. Team members place a strog emphasis o early plaig ad learig the uique aspects of a cliet s busiess. Doig so esures that each cliet receives a effective, cost-efficiet ad idepedet audit performed i a timely maer. The Assurace divisio works with commercial ad SEC cliets, govermetal ad ot-for-profit etities ad employee retiremet plas. A full rage of services is offered icludig: Agreed-Upo Procedures Attestatio Fiacial Audits Reviews ad Compilatios Breakeve Aalyses Sigle Audits Sarbaes-Oxley 404 Compliace Forecasts ad Projectios Iteral Audits Iteral Cotrol Reviews IT Audit ad Advisory Services Public Compay Filigs Strategic ad Operatioal Plaig tax & busiess The Tax & Busiess Services divisio is comprised of dedicated professioals who have bee ivolved with umerous complex trasactios at the local, atioal ad iteratioal levels. The divisio offers all forms of regulatory compliace services, plaig ad specializatio i a variety of areas icludig: Advisory Marcum s Advisory Services divisio works with cliets across a broad rage of idustries. The team s skilled professioals use their experiece to help cliets address ad avigate complex busiess ad persoal issues icludig: bakruptcy ad Fiduciary services Isolvecy ad Receivership Trustee, Reorgaizatio ad Fiacial Advisory Services Estates, Gifts ad Trusts Family Wealth Plaig Bakruptcy ad Isolvecy Tax State ad Local Taxatio SEC ad Large Corporate Matters Iteratioal Taxatio Real Estate Tax Services IRS Represetatio Foresic ad Litigatio services Foresic Accoutig ad Fraud Assessmet Damage Determiatio ad Expert Testimoy Marital Dissolutio Regulatory Compliace, icludig Bak Secrecy Act ad Taxatio Due Diligece ad Capital Formatio Computer Foresics Busiess Valuatio With parter ivolvemet at every level of service, the Tax & Busiess Services team provides highly persoalized advice ad guidace to a cliet base icludig: High-Net-Worth Idividuals Family Busiess Owers Large Corporatios Iteratioal Busiesses Foreig Natioals Tax Exempt Cliets operatioal ad Process improvemet Busiess Process Improvemet Iteral Cotrols ad Goverace Real Estate Advisory Services Family Office Services Risk Maagemet idustries Marcum s comprehesive services accommodate compaies of all sizes i varied idustries. From start-up through growth, merger or acquisitio to public listig or owership trasitio; Marcum professioals guide busiesses every step of the way. EB-5 Alterative Ivestmets Chia-based Compaies Commuicatios Costructio Employee Beefit Plas Fiacial Services Govermet Agecies Healthcare Hedge Fuds/Alterative Ivestmets High-Net-Worth Idividuals Hospitality Isurace Maufacturig & Distributio Media & Etertaimet Not-For-Profit Orgaizatios Public Compaies Private Equity Real Estate Retail & Cosumer Products SEC Registrats Software & Techology Page 10

12 David S. Appel is a seior parter i Marcum s Tax & Busiess Services divisio ad Natioal Leader of the Firm s EB-5 Regioal Ceter Services Practice group. With more tha 30 years of multidiscipliary experiece i domestic ad iteratioal taxatio, Mr. Appel focuses his practice o family busiess tax strategy ad cosultig services. He has addressed complex issues of estate, successio ad retiremet plaig [wrog lik], icludig family wealth preservatio ad trasfer to future geeratios. <Is there aythig else that ca be added here?> Mr. Appel heads the Firm s Florida tax cosultig services group ad serves o the Florida Operatios Committee. He is also a member of Marcum s Executive Committee. Mr. Appel was awarded the desigatio of Persoal Fiacial Specialist by the America Istitute of Certified Public Accoutats, i recogitio of his cosiderable experiece i persoal fiacial plaig. A expert i estate tax, iteratioal tax, busiess successio plaig ad family estate plaig, he has preseted o umerous occasios to bakig istitutios ad muicipalities ad at various tax cofereces. He also speaks frequetly o a variety of topics related to the federal EB-5 Regioal Ceter Pilot Program, which was established i 1990 to stimulate the U.S. ecoomy through job creatio ad foreig ivestmet i U.S. commercial eterprises. As Leader of Marcum s EB-5 Regioal Ceter Services practice, Mr. Appel oversees a comprehesive rage of accoutig ad regulatory compliace services for both EB-5 ivestors ad the regioal ceters that admiister fuded projects, icludig maagemet of ivestor reports; documetatio of lawful sources of fuds; desig of accoutig systems ad iteral cotrols; outsourced accoutig services; USCIS compliace reportig; iteratioal ivestor tax services; idepedet CPA firm reportig; fuds trasfer accoutig; review of fiacial pro-forma; ad gree card process ad tax effects moitorig. America Istitute of Certified Public Accoutats (AICPA) AICPA Tax Divisio AICPA Persoal Fiacial Plaig Divisio Florida Istitute of Certified Public Accoutats (FICPA) Estate Plaig Coucil of Greater Miami Tax Strategies for Foreig Ivestmet i US Real Estate, Chiese Ivestmet i the US Real Estate Forum, Jue 2012 Source of Fud Verificatio ad Pre-immigratio Taxatio, Aual EB-5 Fiace ad Ivestmet Forum, March 2012 Tax Issues Associated with Discharge of Idebtedess, Marcum LLP Aual CPE Semiar, Jauary 2012 AICPA Natioal Coferece o Fiacial Plaig AICPA Natioal Coferece o Estate Plaig Family Firm Istitute Natioal Coferece Heckerlig Istitute o Estate Plaig Tax strategies for Foreig Ivestmet, EB-5 Summit for Attoreys ad Developer - February, 2013 Source of Fuds verificatio ad pre-immigratio taxatio Natioal EB-5 Fiace Semiar Tour with Greeberg Traurig - March 2013 Source of Fuds verificatio ad pre-immigratio taxatio EB-5 Ivestmet Summit: Dealmakers Coferece - May 2013 Articles - Eb-5 Isights: How Govermet policy ca provide Private Equity Maagers with a alterative method to raise capital: Marcum Private Ivestmets Forum - March 2013 Source of Fuds verificatio ad pre-immigratio taxatio: 2013 Ivest i America Coferece -March 2013 EB-5 Ivestor Based Immigratio: EB-5 From Start to Fiish PINCUS Professioal Educatio - August Key Parter Award, South Florida Busiess Joural Accoutig-Geeral Wier Estate Plaig Busiess Plaig & Goverace Successio Plaig Family Wealth Plaig EB-5 Plaig & Compliace Reportig Multi-Geeratioal Family Busiess High-Net-Worth Idividuals Agricultural Compaies Broker-Dealers Real Estate Compaies Costructio Compaies Aviatio Compaies Maufacturers Distributors Healthcare Master of Busiess Admiistratio, Nova Southeaster Uiversity Bachelor of Sciece, Accoutig, Uiversity of Florida Bachelor of Sciece, Busiess Admiistratio, Fiace, Uiversity of Florida *Licesed by the State of Florida Page 11

13 Marcum Group a family of orgaizatios providig a comprehesive rage of professioal services icludig accoutig ad advisory, techology solutios, wealth maagemet, ad executive ad professioal recruitig. These orgaizatios iclude: Marcum LLP Marcum Berstei & Pichuk LLP MarcumBuchaa Associates LLC Marcum Crous Parters LLC Marcum Fiacial Services LLC Marcum Search LLC Marcum Techology LLC