Does capital loss affect financial requirements for CR1 Visa?

[seanpham 0]

I will have a big capital loss this tax year (bigger than total income of 2 years ). Will it affect financial requirements for CR1 Visa?

 

Any advice would be appreciated greatly.

Thank you

[EA and MK 48]

Where are you in the process? Is your case at the embassy and awaiting an interview or are you just now getting started?

[arken 4,197]

What matters is your current income. If your current income is subsubstantially higher, your capital doesn't even come into play.

[Mike E 11,739]

Does your current earned income suffice to meet the requirements or are you also using investment income?

Edited July 31, 2022 by Mike E

[seanpham 0]

2 hours ago, EA and MK said:

Where are you in the process? Is your case at the embassy and awaiting an interview or are you just now getting started?

I am waiting for NOA2 (150 days since NOA1). Pretty sure I will use this tax year for financial support document.

[seanpham 0]

1 hour ago, arken said:

What matters is your current income. If your current income is subsubstantially higher, your capital doesn't even come into play.

My current income is way higher than income requirement. But I have no saving and lost all of my money in stock. I am starting over, working 2 full-time jobs. Hopefully they don’t question my capital loss like you said. Thank you for your reply.

[seanpham 0]

13 minutes ago, Mike E said:

Does your current earned income suffice to meet the requirements or are you also using investment income?

Yes, it is suffice to meet the requirements. I will not use my investment in the financial support form. But because the capital loss will show up on my tax return, so I afraid that they will ask about it.

[Mike E 11,739]

9 minutes ago, seanpham said:

Yes, it is suffice to meet the requirements. I will not use my investment in the financial support form. But because the capital loss will show up on my tax return, so I afraid that they will ask about it.

The capital loss will reduce your taxable  earned income by $1500 or $3000 depending on your filing status.  And no they will not ask about it, in my experience. I’ve had a net capital loss carry over for years and no one from State or USCIS has ever asked about it.  
 

As an aside, please read up on John Bogle
 

Edited July 31, 2022 by Mike E

[Adventine 3,196]

@Mike E is correct. There are ways to use a capital loss to your advantage, tax-wise. As with everything tax-related, how to do this depends on your specific situation.

 

This is an example of how my husband and I managed our capital losses this year to lower our tax bill next year: https://www.bogleheads.org/wiki/Tax_loss_harvesting

 

The Bogleheads site also has an excellent forum focused on investing.

 

To return to @seanpham 's original question, USCIS and DoS are concerned with your current earned income. As long as you can demonstrate you are consistently earning enough to meet the requirements, you will be fine.

Edited July 31, 2022 by Adventine

[Mike E 11,739]

Agreed with all that but  the point is that because  current earned income is more than sufficient for I-864 purposes, reducing that current income by $3000, which is what will happen in 2022, makes no difference to the decision by a CO.  

[arken 4,197]

7 hours ago, seanpham said:

But I have no saving and lost all of my money in stock.

You don't need to provide any info on any such things. Income is the king. One can even have all of his income spent on mortgage/loan payment with $50 per month savings and still qualify. All you need to have is good income.

Edited July 31, 2022 by arken

[pushbrk 12,898]

8 hours ago, seanpham said:

I am waiting for NOA2 (150 days since NOA1). Pretty sure I will use this tax year for financial support document.

The answer to your question depends actual circumstances.  If you are self employed, and the "loss" impacts the total income line of your 1040, then that's a problem, in that it will make your current income negative.  If it only impacts your assets, and not your "total income" from your tax return, then no problem.  Please clarify.

[seanpham 0]

Ok, I think I have the answer, I am on W2 and my income is more than enough for I-864. Because of that, they will not care about the capital loss.

Thank you guys very much for helping.

[pushbrk 12,898]

2 minutes ago, seanpham said:

Ok, I think I have the answer, I am on W2 and my income is more than enough for I-864. Because of that, they will not care about the capital loss.

Thank you guys very much for helping.

The will only care about the capital loss, IF it impacts the total income line of your federal tax return.  Otherwise, you will not need to disclose anything about your assets.