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Steven M Zelinger
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Steven Zelinger’s Answers

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  • Received single trust distribution in 2015. Are federal taxes witheld by the trustee in preparation of income taxes?

    Sole beneficiary of a non-employee trust. Received a single distribution in 2015, per terms of said trust. Are federal taxes witheld by the trustee in preparation of income taxes or do I have to pay taxes?

    Steven’s Answer

    You need to know if the distribution was trust income or trust principal (or both). The income portion distributed to a beneficiary is taxable. When the trust files its tax return it will generate a "K-1" for distribute income to the beneficiary which the beneficiary will include in his/her own 1040 when filed. It is rare that a trust would withhold taxes for a beneficiary.

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  • Received trust distribution from the principal. Do I pay taxes or does the trust on my behalf?

    I am the only beneficiary of a trust. I received a distribution from the principal and not the income made from investments. Do I have to pay taxes or will the trust pay taxes on my behalf? The trust was established in Wisonsin.

    Steven’s Answer

    In nearly all cases the principal of a trust is not going to be considered income to the beneficiary. THe income the trust makes will be taxable as income to the beneficiary. Typically and estate/inheritance taxes would have already been paid by the estate when the trust was funded. Speak to the trustee or your own attorney to be sure of the situation.

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  • Can incarcerated individuals be an heir? And do spouse's along with their children each receive separate inheritance payments?

    My grandparents had children that are all now deceased my cousin notified me that I along with 14 other grandkids are heir to our grandparents 22 acres of land in va since our parents who were the original heirs are deceased. She stated that we al...

    Steven’s Answer

    This situation requires a thorough analysis of the family tree to really get you a good answer. You should contact an attorney - probably in the state where the grandparents (or last living grandparent) resided at their death b/c it sounds like that is where the probate would be done.

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  • Please write address where to file federal tax return?

    Form 1040

    Steven’s Answer

    Go on the IRS.gov website and search for "where to file" - they have a list of what you need to know there. If you can efile that is typically better.

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  • See above:) Do I need an attorney?

    I have durable power of attorney for my dad who is currently in hospice care with a stage 4 cancer diagnosis. The bank my dad has an account with (Midfirst Bank) is refusing to honor the POA (it was from the state of Arizona Attorney General's we...

    Steven’s Answer

    One would have to review the power of attorney and speak to the bank about the specifics. This type of red tape is not uncommon I'm sad to say. Hindsight being 20/20 it may have been better to use a lawyer initially and/or have had the bank provide a Banking POA that they provide (and honor) ... if your father still has capacity perhaps the bank can provide an approved form that they are more likely to honor. If he does not have capacity you may need a lawyer to fight on your/your father's behalf or file for guardianship.

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  • What are my options for getting her to settle the estate?

    When my mother was still alive, both my sister and myself were co- executors of my parents will. After she died, my sister convinced my father to change his will so she was sole executor. I live in NJ 15 minutes from my father. At the time, my sis...

    Steven’s Answer

    Sounds like you need to petition the Surrogate to have her removed so that you can get this moving and sell the house, etc.

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  • I have a Real Estate/Tax/Trust poser re: selling a second home that I hope someone is willing/helpful enough to tackle…….

    Part 1: (1) Parents bought PA home mid-1950’s for $20K. (2) They bought FL condo late-1990’s & later estab'd FL residency. (3) Both homes moved under their Revocable Trust (parents=co-trustees) a few yrs ago. (4) Dad passed away earl...

    Steven’s Answer

    Refer to answer in other question. Please be sure to retain counsel.

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  • When I receive income to my company bank account through PayPal, how income TAX works for a Delaware LLC ?

    I am a startup owner from Sri Lanka. I recently formed an LLC in Delaware through delawareinc.com. I am working on getting an EIN for the LLC in order to open a business bank account in USA. So I can then create a US PayPal account and start getti...

    Steven’s Answer

    You have a number of questions really so it is not easy to answer here. You don't say if you are a sole member LLC or if there are partners. If you are a sole member LLC the income of the business will flow through to you personally (you would file a Schedule C on your Form 1040 to report your business income). Receiving payments through something like paypal doesn't really effect your income (other than perhaps you need to account for processing fees as a business expense, and paypal can issue 1099s to match up payments). Business income is income if it is in the form of cash, checks, credit cards, etc.

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  • What do I need to prove that she is spending all the trust money in favoring one beneficiary of the other

    My aunt is executor of the estate she doesn't give me any information and I guess she has offered my uncle an amount of money to settle for his inheritance but hasn't even talk to me or offered me anything she has already try to cut me out but she...

    Steven’s Answer

    Hire an estate attorney to request an accounting of the estate and/or trust. You say "trust" and then say "executor" so I'm not sure if it is an estate or a trust (a trust has a "trustee") but in any event the person is a fiduciary and will be required to provide an accounting to a beneficiary.

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  • Do I have to get a legal divorce to for taxes as single again?

    Alabama common law marriage. Filed taxes as married and amended previous years.

    Steven’s Answer

    You can file as married, filing separately (but not single) prior to the divorce being filed. If you are in fact common law married (that is a big if) you are married which means you need to be divorced like anyone else. There are some exceptions in the internal revenue code that allow someone to be "considered unmarried." - I've attached a link but I would file with the advice of a CPA who you've explained the situation to

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