26 U.S.C. § 652

Inclusion of amounts in gross income of beneficiaries of trusts distributing current income only

Read at: OLRCuscode.house.gov CornellLII GovInfogovinfo.gov JustiaTitle 26 CasesGoogle Scholar

(a) Inclusion

Subject to subsection (b), the amount of income for the taxable year required to be distributed currently by a trust described in section 651 shall be included in the gross income of the beneficiaries to whom the income is required to be distributed, whether distributed or not. If such amount exceeds the distributable net income, there shall be included in the gross income of each beneficiary an amount which bears the same ratio to distributable net income as the amount of income required to be distributed to such beneficiary bears to the amount of income required to be distributed to all beneficiaries.

(b) Character of amounts

The amounts specified in subsection (a) shall have the same character in the hands of the beneficiary as in the hands of the trust. For this purpose, the amounts shall be treated as consisting of the same proportion of each class of items entering into the computation of distributable net income of the trust as the total of each class bears to the total distributable net income of the trust, unless the terms of the trust specifically allocate different classes of income to different beneficiaries. In the application of the preceding sentence, the items of deduction entering into the computation of distributable net income shall be allocated among the items of distributable net income in accordance with regulations prescribed by the Secretary.

If the taxable year of a beneficiary is different from that of the trust, the amount which the beneficiary is required to include in gross income in accordance with the provisions of this section shall be based upon the amount of income of the trust for any taxable year or years of the trust ending within or with his taxable year.

(Aug. 16, 1954, ch. 736, 68A Stat. 219; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)Editorial NotesAmendments

1976—Subsec. (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Notes of Decisions

Cited in 6 cases, 1957–1998 · leading case: Estate of Ernst N. Petschek, Deceased, Thomas H. Petschek and Asher Lans, Executors v. The Commissioner of Internal Reve

Sort: Relevance Newest Treatment

Estate of Ernst N. Petschek, Deceased, Thomas H. Petschek and Asher Lans, Executors v. The Commissioner of Internal Reve (1984) ca2 “As a trust beneficiary, Petschek would be deemed to have received income derived from sources within the United States, 26 U.S.C. § 652 (b) (1982); Treas.Reg. § 1.”

Jonathan B. Geftman v. Commissioner of Internal Revenue (1998) ca3 “See 26 U.S.C. § 652 (a); Treas. Reg. § 1.652 (a)-2(b).”

Mary C. Ellis v. United States (1969) ca6 · cites it 2× “By virtue of 26 U.S.C. §§ 652 (b) and 662(b) the non-taxable character of the interest continues in the hands of the beneficiary when tax-exempt interest is distributed to a beneficiary in the form of trust income.”

Ellis v. United States (1968) tnwd “” 26 U.S.C. §§ 652 (b), 662(b). Treasury Regulation section 1.”

Koffman v. United States (1961) mied “While we were impressed by plaintiff’s theory that the widow beneficiary would be bound by “reasonableness” in the amount she needed for expenses and costs of living, nevertheless the words “the reasonableness thereof to be determined by her” made an impression upon this court…”

Dovey v. United States (1957) paed “Congress appears to have recognized the justness of this contention by providing in the Internal Revenue Code of 1954, 26 U.S.C.A. § 652 , that income currently distributable to a trust beneficiary “ * * shall have the same character in the hands of the beneficiary as in the…”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.