26 U.S.C. § 661
Deduction for estates and trusts accumulating income or distributing corpus
# (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.
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Cited by 65
- 26 CFR § 1.1361-1 — S corporation defined.
- 26 CFR § 1.1411-3 — Application to estates and trusts.
- 26 CFR § 1.1446-3 — Time and manner of calculating and paying over the 1446 tax.
- 26 CFR § 1.199A-6 — Relevant passthrough entities (RPEs), publicly traded partnerships (PTPs), trusts, and estates.
- 26 CFR § 1.430(h)(2)-1 — Interest rates used to determine present value.
- 26 CFR § 1.59A-3 — Base erosion payments and base erosion tax benefits.
- 26 CFR § 1.613A-4 — Limitations on application of § 1.613A-3 exemption.
- 26 CFR § 1.641(b)-3 — Termination of estates and trusts.
- 26 CFR § 1.641(c)-1 — Electing small business trust.
- 26 CFR § 1.643(a)-1 — Deduction for distributions.
- 26 CFR § 1.645-1 — Election by certain revocable trusts to be treated as part of estate.
- 26 CFR § 1.651(a)-1 — Simple trusts; deduction for distributions; in general.
Show 48 more
- 26 CFR § 1.651(a)-3 — Distribution of amounts other than income.
- 26 CFR § 1.661(a)-1 — Estates and trusts accumulating income or distributing corpus; general.
- 26 CFR § 1.661(a)-2 — Deduction for distributions to beneficiaries.
- 26 CFR § 1.661(b)-1 — Character of amounts distributed; in general.
- 26 CFR § 1.661(c)-1 — Limitation on deduction.
- 26 CFR § 1.661(c)-2 — Illustration of the provisions of section 661.
- 26 CFR § 1.662(a)-2 — Currently distributable income.
- 26 CFR § 1.662(c)-4 — Illustration of the provisions of sections 661 and 662.
- 26 CFR § 1.663(a)-1 — Special rules applicable to sections 661 and 662; exclusions; gifts, bequests, etc.
- 26 CFR § 1.663(a)-2 — Charitable, etc., distributions.
- 26 CFR § 1.663(a)-3 — Denial of double deduction.
- 26 CFR § 1.663(c)-1 — Separate shares treated as separate trusts or as separate estates; in general.
- 26 CFR § 1.663(c)-5 — Examples.
- 26 CFR § 1.665(a)-0 — Excess distributions by trusts; scope of subpart D.
- 26 CFR § 1.665(a)-0A — Excess distributions by trusts; scope of subpart D.
- 26 CFR § 1.665(a)-1 — Undistributed net income.
- 26 CFR § 1.665(a)-1A — Undistributed net income.
- 26 CFR § 1.665(b)-1 — Accumulation distributions of trusts other than certain foreign trusts; in general.
- 26 CFR § 1.665(b)-1A — Accumulation distributions.
- 26 CFR § 1.665(b)-2 — Exclusions from accumulation distributions in the case of trusts (other than a foreign trust created by a U.S. person).
- 26 CFR § 1.665(c)-1 — Accumulation distributions of certain foreign trusts; in general.
- 26 CFR § 1.665(e)-1 — Preceding taxable year.
- 26 CFR § 1.665(e)-1A — Preceding taxable year.
- 26 CFR § 1.665(e)-2 — Application of separate share rule.
- 26 CFR § 1.665(g)-2A — Application of separate share rule.
- 26 CFR § 1.666(b)-1 — Total taxes deemed distributed.
- 26 CFR § 1.666(b)-1A — Total taxes deemed distributed.
- 26 CFR § 1.666(c)-1 — Pro rata portion of taxes deemed distributed.
- 26 CFR § 1.666(c)-1A — Pro rata portion of taxes deemed distributed.
- 26 CFR § 1.666(c)-2 — Illustration of the provisions of section 666.
- 26 CFR § 1.666(c)-2A — Illustration of the provisions of section 666 (a), (b), and (c).
- 26 CFR § 1.668(a)-1A — Amounts treated as received in prior taxable years; inclusion in gross income.
- 26 CFR § 1.668(b)-2 — Illustration of the provisions of subpart D.
- 26 CFR § 1.669(a)-2 — Rules applicable to section 669 computations.
- 26 CFR § 1.669(b)-1 — Information requirements.
- 26 CFR § 1.677(b)-1 — Trusts for support.
- 26 CFR § 1.681(a)-2 — Limitation on charitable contributions deduction of trusts with trade or business income.
- 26 CFR § 1.691(c)-2 — Estates and trusts.
- 26 CFR § 1.9002-4 — Election to pay net increase in tax in installments.
- 26 CFR § 1.9002-5 — Special rules relating to interest.
- 26 CFR § 20.6166A-3 — Acceleration of payment.
- 26 CFR § 53.4947-1 — Application of tax.
- 26 CFR § 601.401 — Employment taxes.
- 26 U.S.C. § 45 — Electricity produced from certain renewable resources, etc.
- 26 U.S.C. § 45Y — Clean electricity production credit
- 26 U.S.C. § 6166 — Extension of time for payment of estate tax where estate consists largely of interest in closely held business
- 26 U.S.C. § 643 — Definitions applicable to subparts A, B, C, and D
- 26 U.S.C. § 662 — Inclusion of amounts in gross income of beneficiaries of estates and trusts accumulating income or distributing corpus
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