26 U.S.C. § 651
Deduction for trusts distributing current income only
# (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.
Source: view the official text
Cited by 38
- 26 CFR § 1.1251-3 — Definitions relating to section 1251.
- 26 CFR § 1.1312-5 — Correlative deductions and inclusions for trusts or estates and legatees, beneficiaries, or heirs.
- 26 CFR § 1.1411-3 — Application to estates and trusts.
- 26 CFR § 1.1441-1 — Requirement for the deduction and withholding of tax on payments to foreign persons.
- 26 CFR § 1.1441-5 — Withholding on payments to partnerships, trusts, and estates.
- 26 CFR § 1.1446-3 — Time and manner of calculating and paying over the 1446 tax.
- 26 CFR § 1.1471-1 — Scope of chapter 4 and definitions.
- 26 CFR § 1.199A-6 — Relevant passthrough entities (RPEs), publicly traded partnerships (PTPs), trusts, and estates.
- 26 CFR § 1.469-11 — Applicability date and transition rules.
- 26 CFR § 1.59A-3 — Base erosion payments and base erosion tax benefits.
- 26 CFR § 1.641(b)-1 — Computation and payment of tax; deductions and credits of estates and trusts.
- 26 CFR § 1.641(c)-1 — Electing small business trust.
Show 26 more
- 26 CFR § 1.642(b)-1 — Deduction for personal exemption.
- 26 CFR § 1.642(d)-1 — Net operating loss deduction.
- 26 CFR § 1.642(i)-1 — Certain distributions by cemetery perpetual care funds.
- 26 CFR § 1.643(a)-1 — Deduction for distributions.
- 26 CFR § 1.643(a)-4 — Extraordinary dividends and taxable stock dividends.
- 26 CFR § 1.643(b)-1 — Definition of income.
- 26 CFR § 1.651(a)-1 — Simple trusts; deduction for distributions; in general.
- 26 CFR § 1.651(a)-2 — Income required to be distributed currently.
- 26 CFR § 1.651(a)-3 — Distribution of amounts other than income.
- 26 CFR § 1.651(b)-1 — Deduction for distributions to beneficiaries.
- 26 CFR § 1.652(c)-4 — Illustration of the provisions of sections 651 and 652.
- 26 CFR § 1.663(a)-3 — Denial of double deduction.
- 26 CFR § 1.665(a)-0A — Excess distributions by trusts; scope of subpart D.
- 26 CFR § 1.665(e)-1 — Preceding taxable year.
- 26 CFR § 1.67-4 — Costs paid or incurred by estates or non-grantor trusts.
- 26 CFR § 1.691(c)-2 — Estates and trusts.
- 26 CFR § 26.2642-7 — Relief under section 2642(g)(1).
- 26 CFR § 301.9100-7T — Time and manner of making certain elections under the Tax Reform Act of 1986.
- 26 CFR § 301.9100-8 — Time and manner of making certain elections under the Technical and Miscellaneous Revenue Act of 1988.
- 26 CFR § 48.6435-1T — Dyed fuel refund.
- 26 CFR § 601.105 — Examination of returns and claims for refund, credit or abatement; determination of correct tax liability.
- 26 U.S.C. § 642 — Special rules for credits and deductions
- 26 U.S.C. § 643 — Definitions applicable to subparts A, B, C, and D
- 26 U.S.C. § 646 — Tax treatment of electing Alaska Native Settlement Trusts
- 26 U.S.C. § 652 — Inclusion of amounts in gross income of beneficiaries of trusts distributing current income only
- 26 U.S.C. § 663 — Special rules applicable to sections 661 and 662
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