Treasury Regulations (26 C.F.R.)
26 CFR § 1.681(a)-1
Limitation on charitable contributions deductions of trusts; scope of section 681.
Under section 681, the unlimited charitable contributions deduction otherwise allowable to a trust under section 642(c) is, in general, subject to percentage limitations, corresponding to those applicable to contributions by an individual under section 170(b)(1) (A) and (B), under the following circumstances;
# (a)
To the extent that the deduction is allocable to “unrelated business income”;
# (b)
For taxable years beginning before January 1, 1970, if the trust has engaged in a prohibited transaction;
# (c)
For taxable years beginning before January 1, 1970, if income is accumulated for a charitable purpose and the accumulation is (1) unreasonable, (2) substantially diverted to a noncharitable purpose, or (3) invested against the interests of the charitable beneficiaries.
Further, if the circumstance set forth in paragraph (a) or (c) of this section is applicable, the deduction is limited to income actually paid out for charitable purposes, and is not allowed for income only set aside or to be used for those purposes. If the circumstance set forth in paragraph (b) of this section is applicable, deductions for contributions to the trust may be disallowed. The provisions of section 681 are discussed in detail in §§ 1.681(a)-2 through 1.681(c)-1. For definition of the term “income”, see section 643(b) and § 1.643(b)-1.
[T.D. 6500, 25 FR 11814, Nov. 26, 1960, as amended by T.D. 7428, 41 FR 34627, Aug. 16, 1976]
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In this part (40 sections)
- 1.674(c)-1 · Excepted powers exercisable only by independent trustees.
- 1.674(d)-1 · Excepted powers exercisable by any trustee other than…
- 1.674(d)-2 · Limitations on exceptions in section 674 (b), (c), and (d).
- 1.675-1 · Administrative powers.
- 1.676(a)-1 · Power to revest title to portion of trust property in…
- 1.676(b)-1 · Powers exercisable only after a period of time.
- 1.677(a)-1 · Income for benefit of grantor; general rule.
- 1.677(b)-1 · Trusts for support.
- 1.678(a)-1 · Person other than grantor treated as substantial owner;…
- 1.678(b)-1 · If grantor is treated as the owner.
- 1.678(c)-1 · Trusts for support.
- 1.678(d)-1 · Renunciation of power.
- 1.679-0 · Outline of major topics.
- 1.679-1 · U.S. transferor treated as owner of foreign trust.
- 1.679-2 · Trusts treated as having a U.S. beneficiary.
- 1.679-3 · Transfers.
- 1.679-4 · Exceptions to general rule.
- 1.679-5 · Pre-immigration trusts.
- 1.679-6 · Outbound migrations of domestic trusts.
- 1.679-7 · Effective dates.
- 1.681(a)-1 · Limitation on charitable contributions deductions of…
- 1.681(a)-2 · Limitation on charitable contributions deduction of trusts…
- 1.681(b)-1 · Cross reference.
- 1.682(a)-1 · Income of trust in case of divorce, etc.
- 1.682(b)-1 · Application of trust rules to alimony payments.
- 1.682(c)-1 · Definitions.
- 1.683-1 · Applicability of provisions; general rule.
- 1.683-2 · Exceptions.
- 1.683-3 · Application of the 65-day rule of the Internal Revenue Code…
- 1.684-1 · Recognition of gain on transfers to certain foreign trusts…
- 1.684-2 · Transfers.
- 1.684-3 · Exceptions to general rule of gain recognition.
- 1.684-4 · Outbound migrations of domestic trusts.
- 1.684-5 · Effective/applicability dates.
- 1.691(a)-1 · Income in respect of a decedent.
- 1.691(a)-2 · Inclusion in gross income by recipients.
- 1.691(a)-3 · Character of gross income.
- 1.691(a)-4 · Transfer of right to income in respect of a decedent.
- 1.691(a)-5 · Installment obligations acquired from decedent.
- 1.691(b)-1 · Allowance of deductions and credit in respect to decedents.