Pre-Immigration Tax and U.S. Investment Planning for High Net Worth Individuals

This CLE/CPE course will provide tax counsel and advisers with a comprehensive guide to the tax and investment planning challenges and opportunities for high net worth foreign clients seeking to immigrate to the United States. The panel will discuss strategies for minimizing the U.S. tax impact of foreign-source ordinary and capital income before establishing tax residency in the U.S., detail the current EB-5 program for nonresidents seeking to establish permanent residency through investment in the U.S. economy, outline the tax issues that can arise from participating in the EB-5 program and discuss alternative immigration investment options that may be more tax friendly.

The United States is seen as a tax haven for high net worth foreign individuals, even as U.S. corporations invert to lower tax destinations. The U.S. resistance to additional banking disclosure rules is reinforcing America's image as the ultimate destination for many wealthy immigrants. This creates an opportunity for tax counsel and advisers to provide critical income and transfer tax planning to minimize the U.S. tax impact of preexisting foreign assets and to help design an immigration strategy through investment in the U.S.

Because the U.S. imposes tax on its residents' worldwide income, preserving the financial wealth of would-be immigrants to the U.S. may depend on accelerating income and gains and deferring deductions/losses before establishing U.S. residency. This is a desirable strategy if the U.S. statutory tax rate is higher than the immigrant's current tax home, but tax counsel must be aware of the impact on after-tax holdings.

Another critical aspect of pre-immigration planning is assisting clients with establishing U.S. residency and gaining immigration priority by applying for an EB-5 investor visa. This requires a substantial investment in a U.S. trade or business in which the immigrant would take an active role. Tax advisers need to thoroughly understand the requirements of this program to assist clients in the application process.

Listen as our experienced panel provides a thorough guide to the nuances of pre-immigration tax planning, offering practical tips to help assist high net worth clients transition into the U.S. in a tax-efficient manner.