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Henry Daniel Lively

Henry Lively’s Answers

4,610 total


  • What is the US tax law for expats accepting a job outside? How complicated is the law? Does one pay state and federal taxes?

    If one accepts a job outside the country, what state is he going to pay tax on? Are the federal tax rates same as 1040? Please explain, thank you.

    Henry’s Answer

    If you remain a United States citizen, you are taxed on your worldwide income no matter where you live. However, there are income exclusions and Tax treaties with other nations that can yield considerably favorable tax results. This get complicated and you should have a tax professional that deals with expats returns to prepare yours.

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  • My ex is not wanting to sign our 2010 and 2011 tax returns (we were married full year) what can i do to file them myself

    we were married until 2014, as well as living together, she has drug her feet on getting her documents together and now does not want to sign them. i need to file bankruptcy this year, and need them filed, i am also hanging onto my 12 and 13 year...

    Henry’s Answer

    File as married filing separately, you cannot compel her to file jointly with you.

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  • Can i claim my child on taxes if a letter says the father is entitled ti claim the child but the child lives with me yearly..

    Shared custody but no income or support from other parent

    Henry’s Answer

    • Selected as best answer

    I am curious as to what this letter is that you mentioned. It does not appear that there is a court order regarding the deduction. The custodial parent (that is you here) is entitled to the deduction unless the non-custodial parent receives a signed Form 8332 from the custodial parent releasing the deduction to them. This Form is also revocable by the custodial parent. Therefore, without a court order or a form 8332 provided to the other parent, you should be entitled to the deduction. I would recommend that you consult with a family law or tax attorney to have them review the letter to determine if it binds you to anything with regard to the deduction just to be safe.

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  • Do I have to file Missouri taxes when I am a Florida resident and received a w2 from an Missouri Based Corporation?

    I am an independant contractor but received a w2 from a Missouri Corporation who included my wages under state wages I have never lived in Misssouri and am a Florida state resident (where there is no state income taxes). The company stated they...

    Henry’s Answer

    If the W-2 shows that you earned wages in Missouri, then Missouri will be looking for a State income tax return from you. If you worked in Missouri for this company this would be correct and you would have Missouri source income that would require you to file there. However, if you did not work in Missouri, the W-2 is most likely incorrect and should be reissued. It does not matter if you lived in Missouri, only that you worked there to require you to file a return there.

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  • 1031 Exchange Question

    My sister sold a rental property in CA on 9/2/14 and currently has the money in a 1031 Exchange account. Her identification period ends on 10/17/14. She has identified 1 property, but it was not accepted by the seller. She will be identifying 2 mo...

    Henry’s Answer

    The time periods under Section 1031 are hard and fast and cannot be extended. You have the opportunity to identify the property to be acquired in the exchange for a 45 day period. If this is not accomplished, your 1031 exchange will fail and the gain from the sale of the property will not be deferred, triggering immediate taxation. If you are having trouble identifying property, you could try a reverse exchange whereby the property is identified first. This cannot be done in this transaction since the original property has already been sold.

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  • I recently won a settlement against the insurance company of the apartment I rent. The roof fell on me.

    Do I have to pay taxes on the money I received? I am on SSI so I had no list wages

    Henry’s Answer

    If your damage award was to compensate for your damages and physical injuries, it is probably not taxable. The settlement should detail out what it is specifically for so that you can determine what is taxable.

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  • Advice (or Wisdom) for Dealing with the Calif Franchise Tax Board

    I received a "proposed assessment" from the FTB but there was very little information on the letter, so I called. The agent said I could not claim Head Of Household because my dependent (son) didn't live with me for the entire year (2013). I r...

    Henry’s Answer

    The Franchise Tax Board often sends out these types of notices in CA. It is a proposed assessment and you can protest it. Specifically address what the notice questions. If you now know that the issue is that they are disallowing HOH status you will need to show that you meet all the elements of the test and provide back-up. If the issue centers around your son living with you, provide any back up have regarding this and include a declaration from you and someone else that can verify this is true. If you do not feel comfortable with this, hire a local tax professional to represent you.

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  • Should I get a K1 if I am not receiving self-employed income?

    If I invested in a small LLC company, and own a minority share, but am not receiving any income from that company, should I receive a K1 declaring self-employment income? I would have to pay taxes on such a fake income. There is precisely...

    Henry’s Answer

    When you invest in an LLC it prepares a tax return and gives you a Form K-1 for your share of the income and expenses. This may not equal actual distributions that you receive from the company, and most the time it does not. You are still responsible to pay taxes on your share. You could work out an agreement with the company to receive a distribution to pay taxes each year if there is available cash flow.

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  • I want to sell online (crafts, yard sale)and take out for taxes + write off expenses. Just for me, no employees.What do I need?

    I want to sell online (crafts, yard sale)and take out for taxes + write off expenses. Just for me, no employees.What do I need? This is just a small hobby, not a full-fledged business

    Henry’s Answer

    This may seem like a hobby to you, but it sounds like a business. A "hobby" for tax purposes has a specific meaning in that it is not done for a profit. This limits your tax deductions to the amount of revenue you make. Treat this like a true business. As long as this stays small you can report the revenue and expenses of the activity on Schedule C of your Form 1040. Maintain a separate bank account just for the business and do not pay personal expenses out of the account.

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  • Where do we go from here, we now have no paperwork, no 1099s. tried to do the right thing, and got screwed

    My boyfriend, a small business owner did not file his taxes for 10 yrs, I come along and encourage him to clean up his finances. There is a Levy on his home and IRS has taken from his account 3 times. We meet w a tax resolution company in Orange C...

    Henry’s Answer

    Unfortunately, the tax resolution business is full of companies that take your money and do not complete the job. This is a serious situation and you should consult with a tax attorney rather than another one of these types of companies. You are already in enforced collections and need to take action fast to preserve your rights. Do not sign anything with the old resolution company until you consult with an attorney.

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