§ 651. Deduction for trusts distributing current income only
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(a)Deduction In the case of any trust the terms of which—
(1)provide that all of its income is required to be distributed currently, and
(2)do not provide that any amounts are to be paid, permanently set aside, or used for the purposes specified in section 642(c) (relating to deduction for charitable, etc., purposes),
there shall be allowed as a deduction in computing the taxable income of the trust the amount of the income for the taxable year which is required to be distributed currently. This section shall not apply in any taxable year in which the trust distributes amounts other than amounts of income described in paragraph (1).
(b)Limitation on deduction If the amount of income required to be distributed currently exceeds the distributable net income of the trust for the taxable year, the deduction shall be limited to the amount of the distributable net income. For this purpose, the computation of distributable net income shall not include items of income which are not included in the gross income of the trust and the deductions allocable thereto.
(Aug. 16, 1954, ch. 736, 68A Stat. 219.)
Connections4 cite this
Cited by 4 sections · top 3
statutes-at-large
- Public Law 94–528To amend the Internal Revenue Code of 1954 to provide for a distribution deduction for certain cemetery perpetual care fund, to modify the effective dates of certain provision of the Tax Reform Act of 1976, and for other purposes
- Public Law 102–416To restore the Federal trust relationship of the United Auburn Indian Community, to establish the Advisory Council on California Indian Policy, and for other purposes
- Public Law 95–600To amend the Internal Revenue Code of 1954 to reduce income taxes, and for other purposes
2 references not yet in our index
- Aug. 16, 1954, ch. 736
- 68A Stat. 219
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§ 651
Deduction for trusts distributing current income only
Stat.×4
ActAug. 16, 1954, ch. 736
Stat.68A Stat. 219
Cites 2Cited by 4 across 1 source