§ 661. Deduction for estates and trusts accumulating income or distributing corpus
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/usc/title-26/section-661A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Deduction In any taxable year there shall be allowed as a deduction in computing the taxable income of an estate or trust (other than a trust to which subpart B applies), the sum of—
(1)any amount of income for such taxable year required to be distributed currently (including any amount required to be distributed which may be paid out of income or corpus to the extent such amount is paid out of income for such taxable year); and
(2)any other amounts properly paid or credited or required to be distributed for such taxable year;
but such deduction shall not exceed the distributable net income of the estate or trust.
(b)Character of amounts distributed The amount determined under subsection
(a)shall be treated as consisting of the same proportion of each class of items entering into the computation of distributable net income of the estate or trust as the total of each class bears to the total distributable net income of the estate or trust in the absence of the allocation of different classes of income under the specific terms of the governing instrument. In the application of the preceding sentence, the items of deduction entering into the computation of distributable net income (including the deduction allowed under section 642(c)) shall be allocated among the items of distributable net income in accordance with regulations prescribed by the Secretary.
(c)Limitation on deduction No deduction shall be allowed under subsection
(a)in respect of any portion of the amount allowed as a deduction under that subsection (without regard to this subsection) which is treated under subsection
(b)as consisting of any item of distributable net income which is not included in the gross income of the estate or trust.
(Aug. 16, 1954, ch. 736, 68A Stat. 220; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title III, §§ 302(b)(2), 308(a), Sept. 3, 1982, 96 Stat. 586, 591; Pub. L. 98–67, title I, § 102(a), Aug. 5, 1983, 97 Stat. 369.)
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Cited by 7 sections · top 5
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- Public Law 91–169to promote the safety of employees and travelers upon railroads by limiting the hours of service of employees thereon,” approved March 4, 1907
- Public Law 85–866
- Public Law 95–600To amend the Internal Revenue Code of 1954 to reduce income taxes, and for other purposes
- Public Law 97–248To provide for tax equity and fiscal responsibility, and for other purposes
12 references not yet in our index
- Aug. 16, 1954, ch. 736
- 68A Stat. 220
- Pub. L. 94–455, title XIX, § 1906(b)(13)(A)
- 90 Stat. 1834
- Pub. L. 97–248, title III
- 96 Stat. 586
- Pub. L. 98–67, title I, § 102(a)
- 97 Stat. 369
- Pub. L. 98–67
- Pub. L. 97–248
- Pub. L. 98–67, title I
- Pub. L. 94–455
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§ 661
Deduction for estates and trusts accumulating income or distributing corpus
Stat.×6
Pub. L.×1
ActAug. 16, 1954, ch. 736
Stat.68A Stat. 220
Pub. L.Pub. L. 94–455, title XIX, § 1906(b)(13)(A)
Stat.90 Stat. 1834
Pub. L.Pub. L. 97–248, title III
Cites 12 · showing 5Cited by 7 across 2 sources