Treasury Regulations · 26 CFR

§ 1.246-1. Deductions not allowed for dividends from certain corporations.

In effect eCFR current as of October 15, 2026

Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).

Regulation under 26 U.S.C. § 246

Cite as 26 CFR § 1.246-1

At a glance

Read from the text and its source citation. Not part of the regulation.

Status: In the current eCFR
Issued: November 26, 1960 by T.D. 6500
Last amended: February 6, 1981 by T.D. 7767
Issued under: 26 U.S.C. § 246
Length: 210 words · about 1 min to read
Cross-references: cites 5 Code sections and 2 regulations; cited by 0

The deductions provided in sections 243 (relating to dividends received by corporations), 244 (relating to dividends received on certain preferred stock), and 245 (relating to dividends received from certain foreign corporations), are not allowable with respect to any dividend received from:

¶(a) A corporation organized under the China Trade Act, 1922 (15 U.S.C. ch. 4) (see section 941); or

¶(b) A corporation which is exempt from tax under section 501 (relating to certain charitable, etc., organizations) or section 521 (relating to farmers' cooperative associations) for the taxable year of the corporation in which the distribution is made or for its next preceding taxable year; for

¶(c) A corporation to which section 931 (relating to income from sources within possessions of the United States) applies for the taxable year of the corporation in which the distribution is made or for its next preceding taxable year; or

¶(d) A real estate investment trust which, for its taxable year in which the distribution is made, is taxable under Part II, Subchapter M, Chapter 1 of the Code. See section 243(c)(3), paragraph (c) of § 1.243-2, section 857(c), and paragraph (d) of § 1.857-6.

[T.D. 6500, 25 FR 11402, Nov. 26, 1960, as amended by T.D. 6598, 27 FR 4092, Apr. 28, 1962; T.D. 7767, 46 FR 11264, Feb. 6, 1981]

Cross-references

Computed from the citations in the text of 26 CFR.

Code sections it cites

Regulations it cites

Amendment history

From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.

February 6, 1981Amended by T.D. 7767 (46 FR 11264)
April 28, 1962Amended by T.D. 6598 (27 FR 4092)
November 26, 1960Issued by T.D. 6500 (25 FR 11402)

Where it sits in 26 CFR

Nearby sections

§ 1.245A-10 Examples.
§ 1.245A-11 Applicability dates.
§ 1.245A(d)-1 Disallowance of foreign tax credit or deduction.
§ 1.245A(e)-1 Special rules for hybrid dividends.
§ 1.246-1 Deductions not allowed for dividends from certain corporations.
§ 1.246-2 Limitation on aggregate amount of deductions.
§ 1.246-3 Exclusion of certain dividends.
§ 1.246-4 Dividends from a DISC or former DISC.
§ 1.246-5 Reduction of holding periods in certain situations.