Henry Daniel Lively's Answers

Will I be taxed on settlement awards for personal injury?

Compensation for physical injuries is not taxable. There is no such thing as the bank reporting you if you have a check over $10,000. If you have cash you are depositing over $10,000 in a single day it is a different story and the bank must report to the U.S. Treasury.

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My attorney has a tax lien by the IRS against him and it is preventing me from being paid my settlement.

Part of these funds are obviously trust fund money that does not belong to your attorney and cannot be used to pay his debt with the IRS. Your attorney, or you may need to hire a tax attorney for this matter (at your attorneys expense), should call the IRS and explain the situation and ask for the portion of the funds that belong to the client (you) to be released from the lien. The IRS goes overboard to protect their position and has sent out a levy notice to the insurance company in case...

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Regarding tax

You can each deduct the car for only the portion that you use it for business. This does not include commuting mileage or personal usage.

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Tax, Immigrant

If you have United States source income you will be required to file income tax returns and pay taxes on the income. Money that was transferred from your father would not be income. If you rent out rooms the income you derive from this activity is taxable and would require you to file income tax returns in the United States. it your be a good idea for you to hire a tax professional to prepare these return for you since you are not familiar with our system of taxation.

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Did a deed in lieu last year , got a 1099 for 100,000 is there still a tax forgiveness for fed. and state of calif.

For your principal residence the feds allow you to exclude up to $2 million of qualified mortgage indebtedness under the Mortgage Forgiveness Debt Relief Act of 2007, and California allows the same exclusion, but limits the debt to be excluded to $500,000. If the Act does not provide sufficient coverage or this is not your principal residence or qualified residence indebtedness then you can look to exclude the income under IRC Section 108 if you are insolvent or discharge the debt in a bankruptcy.

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I suspect my previous boss of tax evasion

I think your first stop should be the Labor Board. Next use attorney Larsom's link to the IRS.

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Can I deduct the interest I am paying on my late husband's loan ( Bank is still listing loan under his social security number)

According to IRC Publication 936 you would need to be obligated on the loan. IRC Reg 1.163-1(b) says that you need equitable or legal ownership to take the deduction. Which you seem to have. There are a number of Tax Court cases that address this situation and you should have a local tax professional review these cases along with your specific facts to make a determination of whether you can take this deduction.

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Tax question....Tax return

The IRS uses a matching process to determine whether they believe you should file a tax return. They also look to your filing history. If you received any 1099's or W-2's you will receive notice fairly quickly of their belief that you need to file a return. If you continue to not file, they will eventually file an estimated return for you based on the information that they have. Your statute of limitations remains open until you actually file if you have a filing requirement. If you do not...

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Are there advantages to going LLC rather than staying 1099? (Tax-wise and overall legal-wise)

An LLC is a pass through entity and will not offer you any significant tax advantages. In fact, it will probably cost you more due to the extra tax return preparation costs and potential state fees.

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What are the benefits for siblings for joint tenants vs. tenants in common in re: capital gains tax and probate?

This is a tough question to answer with the minimal facts presented. If you hold title as Joint Tenants, then if any one of the tenants die, the remaining tenants take the property. Nothing will go to the estate of the deceased tenant. If you hold title as tenants in common, their is no automatic transfer on death by operation of law as with a joint tenancy. The interest will have to be probated if it is not disposed of by will or trust. Therefore, joint tenancy will avoid probate and...

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