I-134 final questions about tax returns

[FastTrack 3]

Hi,

One final post before my Fiancee heads to her K-1 interview at London embassy on the 25th of october.

I am self employed. I own/rent/manage an industrial/commercial property in a 50/50 partnership with my sister. We have had this for around 10 years. This property has been successfully rented out for all but one of those years by only 2 tenants. Our first tenants abandoned the building a year or so after the financial crash in 08... the building was vacant for approx. one year and then we were lucky enough to find a quality tenant who has been there 2 years and plans to stay for at least 5 years(they have put their own money into the building to make it the way they wanted it)... during the time we had no tenants I loaned a large sum of personal money to the business with intention to pay myself back which I am currently doing. My sister and I also did not take income for 2 years to payback some of our expenses... Aside from additional funds I take monthly to pay myself back for the loan I made, my sister and I take identical income from the monthly rent with the rest going towards the building and in our business account.

So that is the back story... My personal and business tax returns show a loss for 2011 due to lost income from the previous year, and having to pay our brokers, and make improvements to building for new tenants... I have sent a bunch of stuff with my fiancee in support of the I-134... these things include:

1. proof of business/building existence and ownership

2. Partnership agreement showing my 50/50 partnership with sister

3. Monthly statement from property manager showing incoming amount of rent collected, outgoing funds to business account, and outgoing funds to my sister and I personally. It also shows outgoing funds to me for Loan payback.

4. a yearly statement from our property manager showing all funds coming in and going out. This shows all check #'s written to my sister and I since january 2012.

5. A loan payment schedule from our property manager detailing the monthly payments to me for the next 48 months

6. A signed and notarized letter from our property manager stating that she has worked for us for ten years. In this letter she says that the statements that I have handed in from her as proof are indeed legitimate and truthful. She explains how she makes the income checks to us monthly, writes me the check for my loan, and places the rest in the business account. Lastly she explains that the current tenants have always payed on time and that they have expressed intent to extend their lease and have room to grow. She gave her contact info as well.

7. Copies of each check from personal online banking that I have received since january 2012. I started to receive the loan checks in august 2012.

8. business account statements from january-september showing account balance and balance average, and shows the checks that have been received.

9. personal savings account statement showing $17,000

10. A brokers opinion of value of the industrial property I own jointly with my sister... Without disclosing the amount, my half of the property value is worth plenty(even with small mortgage) to qualify me by assets alone, but I am not sure if the fact that I own it with my sister will make it so that it doesn't qualify.

11. I-134 form stating an income of $31,000 per year as of January 2012. This is made up of my personal Income from rental and 4 years of monthly loan payments back to me.

12. Lastly I have included my original 2011 personal tax return showing loss because I took no income for 2 years... and a copy of my 2011 business tax return showing a loss as well despite the fact that it shows incoming monthly rent checks.

THIS IS MY QUESTION: If the property I own is not accepted as an asset, do you think they will accept the overkill amount of stuff I have sent in with my fiancee as proof my income without the tax returns weighing too heavily...

Thanks for any replies... I just want things to go smoothly for my Fiancee with as few doubts as possible.... I am super confident about everything else but I am afraid about I-134 and my tax returns

Edited October 14, 2012 by FastTrack

[Rebecca Jo 1,962]

The typical method to measure an affidavit of support for a self-employed person is through tax returns. Yours show a loss. If I follow your scenario properly, it sounds like the upcoming 2012 tax return still won't show significant income. Consular officers aren't accountants and I doubt they will bother to wade through your financial statements. It's the I134 - there are no hard and fast rules at play. All you have to show is "adequate" income. But still........

Your real estate equity won't count towards the affidavit. It's not a liquid asset.

Your savings are not significant enough to make up for your loss of income. If your fiancee held that amount in her bank account, she might be able to self sponsor (a London quirk).

London is a lenient consulate when it comes to the I134. But I doubt yours will pass. If it does, it's the only consulate on the planet that will cut you this huge break. None of your financials would pass muster for a later I864, where three years averaging on your tax figures are the stipulated rule. So even if you are successful at London, I wonder how you plan to sponsor her for adjustment of status.

[Anh map 2,098]

London is a bit different regarding the affidavit of support than most other embassies. And that may be helpful in your circumstance. FWIW: what you have would not be sufficient at most others. Both from a dollar amount aspect and a documentation aspect.

Here is what the London embassy has on its website regarding the public charge provision: http://london.usembassy.gov/faffidavit.html

Typically:

-Assets being presented must have a recent valuation from a licensed appraiser along with any/all lien or mortgage documents (page 8, I-864 instructions). Joint ownership sometimes is a problem.

-Assets are evaluated at a 3:1 ratio. $17k in savings = ~ $5700 toward income.

-Your most recent tax return (line 22) is the income amount considered.

You may want to have a joint sponsor lined up just in case the CO doesn't accept what you have to present.

When you get to the next phase (Adjustment of Status) you will need to have the I-864 requirements met. It won't be as "loose" as it can be in London. So any effort you put into the K1 approval will be steps along in preparation for I-864 submission.

Best of luck to you both.

[Nich-Nick 3,353]

THIS IS MY QUESTION: If the property I own is not accepted as an asset, do you think they will accept the overkill amount of stuff I have sent in with my fiancee as proof my income without the tax returns weighing too heavily...

Thanks for any replies... I just want things to go smoothly for my Fiancee with as few doubts as possible.... I am super confident about everything else but I am afraid about I-134 and my tax returns

Self-employed is a different kettle of fish. It sounds like you have documented it well and if the consulate officer is a CPA he might get it. At this stage, it's a judgement call by the officer. If you look solid financially, it's a go. Only 100% of the poverty level is acceptable amount and even that isn't written into the code. So hopefully the guy says, "yep I believe this guy can support her."

However when you adjust status, it is going to be stricter and your personal tax return adjusted gross income will be a factor. I already lost the plot on your salary. If you are getting one for 2012, then use your 2012 tax return and don't file AOS until taxes are done.

Edit to add: I wrote this about 20 minutes after the original post, but lost wireless. Just picked up the iPad again and hit post. I didn't realize you had some other responses in the meantime. Some of mine has already been said now. And there's a variety of opinions. Let us know how it goes by updating after the interview.

Edited October 14, 2012 by Nich-Nick