26 U.S.C. § 663
Special rules applicable to sections 661 and 662
# (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.
Source: view the official text
Cited by 31
- 26 CFR § 1.102-1 — Gifts and inheritances.
- 26 CFR § 1.1361-1 — S corporation defined.
- 26 CFR § 1.1411-3 — Application to estates and trusts.
- 26 CFR § 1.199A-6 — Relevant passthrough entities (RPEs), publicly traded partnerships (PTPs), trusts, and estates.
- 26 CFR § 1.404(a)-12 — Contributions of an employer under a plan that does not meet the requirements of section 401(a); application of section 404(a)(5).
- 26 CFR § 1.641(c)-1 — Electing small business trust.
- 26 CFR § 1.643(a)-3 — Capital gains and losses.
- 26 CFR § 1.645-1 — Election by certain revocable trusts to be treated as part of estate.
- 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 § 1.662(a)-1 — Inclusion of amounts in gross income of beneficiaries of estates and complex trusts; general.
- 26 CFR § 1.662(a)-3 — Other amounts distributed.
Show 19 more
- 26 CFR § 1.663(a)-1 — Special rules applicable to sections 661 and 662; exclusions; gifts, bequests, etc.
- 26 CFR § 1.663(b)-1 — Distributions in first 65 days of taxable year; scope.
- 26 CFR § 1.663(b)-2 — Election.
- 26 CFR § 1.663(c)-1 — Separate shares treated as separate trusts or as separate estates; in general.
- 26 CFR § 1.663(c)-2 — Rules of administration.
- 26 CFR § 1.663(c)-3 — Applicability of separate share rule to certain trusts.
- 26 CFR § 1.663(c)-4 — Applicability of separate share rule to estates and qualified revocable trusts.
- 26 CFR § 1.663(c)-5 — Examples.
- 26 CFR § 1.665(a)-1 — Undistributed net income.
- 26 CFR § 1.665(a)-1A — Undistributed net income.
- 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(b)-3 — Exclusions under section 663(a)(1).
- 26 CFR § 1.665(e)-2 — Application of separate share rule.
- 26 CFR § 1.665(g)-2A — Application of separate share rule.
- 26 CFR § 1.883-4 — Qualified shareholder stock ownership test.
- 26 CFR § 1.884-5 — Qualified resident.
- 26 U.S.C. § 1361 — S corporation defined
- 26 U.S.C. § 643 — Definitions applicable to subparts A, B, C, and D
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