26 USC 662 - Inclusion of amounts in gross income of beneficiaries of estates and trusts accumulating income or distributing corpus

U.S Code last checked for updates: May 14, 2024

§ 662.

Inclusion of amounts in gross income of beneficiaries of estates and trusts accumulating income or distributing corpus

(a)

Inclusion

Subject to subsection (b), there shall be included in the gross income of a beneficiary to whom an amount specified in section 661(a) is paid, credited, or required to be distributed (by an estate or trust described in section 661), the sum of the following amounts:

(1)

Amounts required to be distributed currently

(2)

Other amounts distributed

All other amounts properly paid, credited, or required to be distributed to such beneficiary for the taxable year. If the sum of—

(A)

the amount of income for the taxable year required to be distributed currently to all beneficiaries, and

(B)

all other amounts properly paid, credited, or required to be distributed to all beneficiaries

exceeds the distributable net income of the estate or trust, then, in lieu of the amount provided in the preceding sentence, there shall be included in the gross income of the beneficiary an amount which bears the same ratio to distributable net income (reduced by the amounts specified in (A)) as the other amounts properly paid, credited or required to be distributed to the beneficiary bear to the other amounts properly paid, credited, or required to be distributed to all beneficiaries.

(b)

Character of amounts

(c)

Different taxable years

(Aug. 16, 1954, ch. 736, 68A Stat. 220; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

cite as: 26 USC 662