Self-Employment and Business Ownership are most commonly one of the MOST difficult types of income to prove to USCIS. Why is that? Well, there are three reasons:
If you are focusing on income from self-employment / business ownership, you generally do not receive a W-2 Employment and its associated (consistent) Weekly or Bi-weekly paycheck. W2 Employment is the easiest form of income to be reviewed by USCIS.
In short, it is one of the most difficult items for most businesses:
the Current Tax Year’s AGI (Adjusted Gross Income)
The AGI can be located in prior tax years in the 1040 Tax Return Filings, but that does not exist for current tax yets (yet). Instead, the current tax year usually has:
For example:
A Business can receive $100,000 annually from clients/patients/jobsites, but if $99,000 goes to expenses, the Business would ONLY profit $1,000. USCIS is looking for the $1,000 , and they do not really recognize the $100,000, nor do they understand the $99,000.
The following is NOT an exhaustive list, but it is a good starting point. Let’s break the documents into what they mean to a USCIS Officer, since that is more beneficial than just providing a mere bulletin list:
The I-864P is a guideline that states the “minimum” needed based on location and household size. The Guideline updates every March and is located here: https://www.uscis.gov/i-864p
Yes, but there is a catch:
Here are 3 examples to help paint a better picture:
Example 1: Business Asset is a Work Truck
Vehicle is valued at $65,000. If the Business Owner owns 100% of the vehicle (no loan), and has a personal vehicle or motorcycle, the vehicle can be added from the business and would add about $22,000 to the current year’s AGI, for I-864 Purposes.
Example 2: Business Asset is a Commercial Building
Many businesses have an office location. That commercial real estate can be used. An office building, even small one, can have a rather large “price tag” / value. The Tax Assessment, Mortgage Statement, and Deed can show the property’s equity. A building valued at $300,000, and with an equity of $90,000, can be added from the business and would add about $30,000 to the current year’s AGI, for I-864 Purposes.
Example 3: Business Asset is a piece of Equipment
The equipment is valued at $500,000. If the Business Owner owns 20% of the equipment and the other 80% is covered by the loan, the equipment can be added from the business and would add about $33,000 to the current year’s AGI, for I-864 Purposes.
Below is a brief list of common I-864 related topics:
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