26 THE QUEENS COURIER • QUEENS BUSINESS • MARCH 11, 2021 FOR BREAKING NEWS VISIT WWW.QNS.COM
queens business
Braunstein, Queens Chamber and local BIDs talk
COVID-19 recovery at small business roundtable
BY JENNA BAGCAL
jbagcal@qns.com
@jenna_bagcal
Last week, Assemblyman
Edward Braunstein and the
Queens Chamber of Commerce
met with chamber members and
Business Improvement District
(BID) leaders for a small business
roundtable.
Th e discussion, which followed
the lawmaker’s recent appointment
to the Assembly’s Working
Group on Transitioning NY
Economy Toward COVID-19
recovery, centered around steps
toward post-pandemic economic
relief, small business support
and the upcoming FY2022 state
budget.
Back in January, Governor
Andrew Cuomo outlined facets
of the executive budget, including
$130 million that would go
toward the Pandemic Recovery
and Restart Program. Under
the program, which Braunstein
called on the state Legislature to
expand, funds would be allocated
to create the Small Business
and Restaurant Return-To-Work
Tax Credit programs.
“In the last year, the COVID-
19 health crisis has presented
extraordinary challenges to New
York City small businesses and
restaurants, who are doing their
best to continuously adapt and
survive,” said Braunstein. “With
New York’s commercial eviction
moratorium expiring, we need
real and immediate rent relief for
our small businesses. It is critical
that the New York state budget
include this and other needed
relief and that the federal government
provide the necessary
funds so that New York business
owners are positioned for
success.”
Several BID directors were
present at the Feb. 26 roundtable,
including Christine Silletti
from the Bayside Village BID,
Jaime-Faye Bean from Sunnyside
Shines, Elizabeth Lusskin from
the LIC Partnership and Kevin
Alexander of the Rockaway
Development & Revitalization
Corporation.
The directors echoed the
urgent need for commercial rent
relief, while also highlighting
some inconsistencies between
city and state regulation and
enforcement and the need for
relief grants for newer businesses.
“The Queens Chamber
is honored to work with
NYS Assemblyman Edward
Braunstein and the COVID-19
Recovery Working Group he is
representing,” said Th omas J.
Grech, president and CEO of the
Queens Chamber of Commerce.
“Assemblyman Braunstein is a
trusted partner of business not
only in Queens, but statewide.
We thank him for asking for the
input of our members, large and
small, as we emerge from the
COVID pandemic.”
In February, Speaker Carl
Heastie appointed Braunstein
to the Working Group on
Transitioning N.Y. Economy
Toward COVID-19 Recovery in
order to aid COVID recovery for
workers and businesses on the
local and state levels.
“The Assembly Working
Group on Transitioning N.Y.
Economy Toward COVID-19
Recovery will allow us to take a
holistic approach to this recovery
process by giving a voice to
all stakeholders and allowing us
to determine the best strategy for
a strong recovery,” Braunstein
said. “One year into the pandemic,
there is a light at the end of
the tunnel and Queens will come
out stronger on the other side.”
Elder Law Minute TM
Important fi lings required for executors of estates & grantors/trustees of trusts
BY RONALD A. FATOULLAH, ESQ.
AND STACEY MESHNICK, ESQ.
It is tax time again and although one may be
ELDER LAW
inclined to procrastinate, the bottom line is that fi ling
estate and income tax returns must be done, and
done the right way. During tax season, clients who
have engaged in estate planning must be aware of tax
documents that have to be fi led as a result of creating
trusts or being an Executor of an estate.
Estates/Trusts
There are two kinds of taxes owed by an estate: one
on the transfer of assets from the decedent to his or
her benefi ciaries and heirs (the estate tax), and another
on income generated by assets of the decedent’s
estate (the income tax).
When an individual dies, his or her assets become
the property of the estate. Any income those assets
generate is also part of the estate and may trigger
the requirement to fi le an estate income tax return.
Examples of assets that would generate income to
the decedent’s estate include savings accounts, CDs,
stocks, bonds, mutual funds and rental property. If the
gross income for the estate or trust was $600 or greater,
the executor/trustee must fi le a federal income
tax return.
Typically, the estate calendar year starts on the day
of the estate owner’s death and ends on December
31 of the same year. The executor, however, can fi le
an election to choose a fi scal year, which means the
tax year ends on the last day of the month before the
one year anniversary of death. The 1041 is due by the
15th day of the fourth month after the tax year end.
If you fi le in December, the estate has a calendar tax
year. If you fi le in any other month, the estate has a
fi scal tax year.
The tax year for trusts is based on a calendar year
(unless the executor and trustee make an election
to treat the estate and trust as one for tax purposes).
Income that accumulates in a trust rather than
being distributed is taxed at a higher rate than the
individual rate.
Trusts
Taxation of a trust is dependent upon the type of
trust. A revocable trust is simple in that the creator is
taxed as the owner of the property and taxed on the
income earned. Therefore, with regard to taxes, it is
the same as if the trust did not exist.
An important point to note is that there are simple
trusts and complex trusts. All income of a simple
trust must be distributed to a benefi ciary. As such, the
benefi ciary pays tax on his or her portion of the trust
income, whether received or not.
The income of a complex trust can accumulate, and
the trust takes a deduction for any income required
to be distributed, if the trust terms require the trustee
to distribute income in the tax year. Also allowed
is a deduction for any other amounts properly paid or
credited or required to be distributed other than current
income, including income or principal payments
made in the trustee’s discretion, annuity payments
from principal, amounts used to discharge a benefi -
ciary’s legal obligation and amounts paid pursuant
to a court order.
Grantor Trusts vs. Non-
Grantor Trusts
A grantor trust gives the grantor (creator) right to
the trust’s assets and/or income. Consequently, creators
of grantor trusts are treated as the owners of the
trust assets. On the other hand, a non-grantor trust is a
separate entity from the creator. As a result, it is treated
as a separate taxpayer. As stated below, the separate
treatment allows deductions on an estate tax return.
However, for the same reason, it will pay its own tax
on any income that is not distributed to benefi ciaries.
Deductions
On the IRS Form 1041, estates and non-grantor
trusts can take deductions for distributions to benefi
ciaries, executor’s fees, attorney and accountant
fees, etc.
Whether an individual has been given the responsibility
to act as an Administrator or Executor of
an Estate, or has established a trust with regard to
personal estate planning, it is wise to consult with
a tax advisor as well as an elder law attorney who is
knowledgeable in the law, planning and tax compliance.
Ronald A. Fatoullah, Esq. is the founder of Ronald
Fatoullah & Associates, a law fi rm that concentrates in
elder law, estate planning, Medicaid planning, guardianships,
estate administration, trusts, wills, and real
estate. Stacey Meshnick Esq. is an elder law attorney
with the fi rm and the Supervisor of the Medicaid
Dept. The law fi rm can be reached at 718-261-1700,
516-466-4422, or toll free at 1-877-ELDER-LAW or
1-877-ESTATES. Mr. Fatoullah is also a partner with
Brightside Advisors, a wealth management fi rm with
offi ces in New York and Los Angeles.
This summary is not legal advice and does not create
any attorney-client relationship. This summary does
not provide a defi nitive legal opinion for any factual situation.
Before the fi rm can provide legal advice or opinion
to any person or entity, the specifi c facts at issue
must be reviewed by the fi rm. Before an attorney-client
relationship is formed, the fi rm must have a signed
engagement letter with a client setting forth the Firm’s
scope and terms of representation.
RONALD FATOULLAH
ESQ, CELA*
Photo via Braunstein’s offi ce
Assemblyman Edward Braunstein talks COVID-19 economic relief with Queens Chamber President and CEO Tom Grech and local BID representatives.
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