Proving the lawful source of the EB-5 investment funds is a key requirement under the EB-5 program. The investment funds may come from a sale of real estate provided that the investor is able to demonstrate how he or she obtained the funds to purchase the property. U.S. Citizenship and Immigration Service requires that substantial supporting documents be submitted with the EB-5 application in order to demonstrate the proceeds from the sale of property as the lawful source of the invested capital.
If available, the Investor should include the following documents with the EB-5 application to prove the investment funds were obtained from the sale of property:
- Capital Source Statement. The Investor should submit a statement stating that the investment funds were derived from the sale of real estate and detail how he or she obtained the funds to purchase the property.
- Income Tax Returns. The Investor’s past five years of individual tax returns should be submitted with the EB-5 application.
- Bank Statement. The Investor should include his or her bank statement demonstrating the receipt of the proceeds from the sale of the property.
- Purchase Contract. The Investor should include the written purchase contract with the EB-5 application.
- Sales Contract. To demonstrate that the investment funds were derived from the sale of the real estate, the EB-5 application should include the sales contract.
- Ownership Certificate. The Investor should include an ownership certificate with the EB-5 application.
- Tax Certificate. The Investor should include a tax certificate demonstrating the payment of taxes from the sale of the property to establish ownership of the real property.
- Other Documents. Other documents specific to the source of the funds used to initially purchase the property should be included with the EB-5 application. The documents required will depend on how the Investor obtained the capital used to purchase the property. A list of documents for common sources of funds can be found in other Source of Funds articles found on this website.
