§ 663. Special rules applicable to sections 661 and 662

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(a)Exclusions There shall not be included as amounts falling within section 661(a) or 662(a)—

(1)Gifts, bequests, etc. Any amount which, under the terms of the governing instrument, is properly paid or credited as a gift or bequest of a specific sum of money or of specific property and which is paid or credited all at once or in not more than 3 installments. For this purpose an amount which can be paid or credited only from the income of the estate or trust shall not be considered as a gift or bequest of a specific sum of money.

(2)Charitable, etc., distributions Any amount paid or permanently set aside or otherwise qualifying for the deduction provided in section 642(c) (computed without regard to sections 508(d), 681, and 4948(c)(4)).

(3)Denial of double deduction Any amount paid, credited, or distributed in the taxable year, if section 651 or section 661 applied to such amount for a preceding taxable year of an estate or trust because credited or required to be distributed in such preceding taxable year.

(b)Distributions in first sixty-five days of taxable year

(1)General rule If within the first 65 days of any taxable year of an estate or a trust, an amount is properly paid or credited, such amount shall be considered paid or credited on the last day of the preceding taxable year.

(2)Limitation Paragraph

(1)shall apply with respect to any taxable year of an estate or a trust only if the executor of such estate or the fiduciary of such trust (as the case may be) elects, in such manner and at such time as the Secretary prescribes by regulations, to have paragraph

(1)apply for such taxable year.

(c)Separate shares treated as separate estates or trusts For the sole purpose of determining the amount of distributable net income in the application of sections 661 and 662, in the case of a single trust having more than one beneficiary, substantially separate and independent shares of different beneficiaries in the trust shall be treated as separate trusts. Rules similar to the rules of the preceding provisions of this subsection shall apply to treat substantially separate and independent shares of different beneficiaries in an estate having more than 1 beneficiary as separate estates. The existence of such substantially separate and independent shares and the manner of treatment as separate trusts or estates, including the application of subpart D, shall be determined in accordance with regulations prescribed by the Secretary.

(Aug. 16, 1954, ch. 736, 68A Stat. 222; Pub. L. 91–172, title I, § 101(j)(17), title III, § 331(b), Dec. 30, 1969, 83 Stat. 528, 598; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105–34, title XIII, §§ 1306(a), (b), 1307(a), (b), Aug. 5, 1997, 111 Stat. 1041.)

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Aug. 16, 1954, ch. 736
68A Stat. 222
Pub. L. 91–172, title I, § 101(j)(17)
83 Stat. 528
Pub. L. 94–455, title XIX, § 1906(b)(13)(A)
90 Stat. 1834
Pub. L. 105–34, title XIII
111 Stat. 1041
Pub. L. 105–34, § 1306(a)
Pub. L. 105–34, § 1306(b)
Pub. L. 105–34, § 1307(a)
Pub. L. 94–455
Pub. L. 91–172, § 101(j)(17)
Pub. L. 91–172, § 331(b)
Pub. L. 105–34, title XIII, § 1306(c)
Pub. L. 105–34, title XIII, § 1307(c)
section 101(j)(17) of Pub. L. 91–172
section 101(k)(1) of Pub. L. 91–172
section 331(b) of Pub. L. 91–172
section 331(d) of Pub. L. 91–172

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cites case law

§ 663

Special rules applicable to sections 661 and 662

Stat.×3

U.S.C.§ 4940

U.S.C.§ 665

ActAug. 16, 1954, ch. 736

Stat.68A Stat. 222

Pub. L.Pub. L. 91–172, title I, § 101(j)(17)

Stat.83 Stat. 528

Pub. L.Pub. L. 94–455, title XIX, § 1906(b)(13)(A)

Cites 22 · showing 7Cited by 3 across 1 source