Need help with I-864 question quick please

[Kaoticor 5]

Dear VJ'rs

Havn't looked at this much since I never thought there was a problem, but reviewing my I-485 package before I send it out, there is an interesting question I need an answer to:

A friend is co-sponsoring me and he is self-employed. He is very intertwined with his business on his tax returns for managing purposes. Anyone who knows self-employment taxes knows how this works... The past several years there have been "considerably" higher numbers on his tax return (he makes quite a bit). This last year, his tax return showed a loss because of reinvesting funds in his company. There was not a "real" loss, although the "total income" line on the I-864 shows a loss. does anyone have any experience with this on if it would cause a problem? I can include the previous 2 years tax returns that show way more than enough to meet the minimum. Im just worred about the negative number that will be shown on the most current total income line.

Also, does annual current income mean "Total income" from line 22 of your tax return or your annual wages?

Any quick replies would be greatly appreciated. Thanks

Edited May 14, 2012 by Kaoticor

[NancyNguyen 1,657]

I am reading a tax fraud. And yes, total income is gross adjusted income.

They concern about the most current one, not 2 years in the past.

[Kaoticor 5]

I am reading a tax fraud. And yes, total income is gross adjusted income.

They concern about the most current one, not 2 years in the past.

No, you aren't reading tax fraud. This is very common (and legal) in business who reinvest money. Anyone who manages a small business and knows about tax laws knows this. I appreciate comments, but you should make sure of the facts first.

[ceadsearc 516]

The most recent year is what matters, so if it doesn't show sufficient income he won't be able to be a cosponsor.

[Harpa Timsah 13,258]

Many self-employed people have trouble with this form because they make it appear as if they made no money. If his income on taxes doesn't qualify, then he can't be a co-sponsor.

[Kaoticor 5]

Thank you for your feedback

[Kaoticor 5]

How about this situation. He shows a loss of -$20,000 on last years return, so instead uses assests to joint sponsor.

(This is of course, with all supporting documentation proving the assests)

If his assets exceed the difference of -$20,000 and the poverty guidlines for a household of 3 which is $23,862 for this year, then $43,862.00 x 3 = $131,586.00 is what he would have to show to qualify to co-sponsor the full amount?

Am I missing anything?

Edited May 14, 2012 by Kaoticor

[Harpa Timsah 13,258]

His assets will be at the 5X rate.

[KayDeeCee 4,892]

His assets will be at the 5X rate.

Assets are only calculated at 3 times the difference when sponsoring for a spouse(or fiance(e) in the case of the I-134), and minor children. The joint sponsor would need to calculate assets at 5 times.