Treasury Regulations · 26 CFR
§ 1.50B-3. Estates and trusts.
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. § 50B
Cite as 26 CFR § 1.50B-3
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- March 7, 1973 by 38 FR 6163
- Issued under
- 26 U.S.C. § 50B
- Length
- 1,039 words · about 5 min to read
- Defines
- 1 term
- Cross-references
- cites 3 Code sections and 3 regulations; cited by 2
(1) XYZ trust, which makes its return on the basis of the calendar year, hires five WIN employees in 1972. The WIN expenses incurred with respect to each employee are as follows:
| WIN employee No. | WIN expenses |
|---|---|
| 1 | $6,000 |
| 2 | 5,000 |
| 3 | 4,000 |
| 4 | 4,000 |
| 5 | 3,000 |
| Total | 22,000 |
For the taxable year 1972 the income of XYZ trust is $10,000 which is allocable as follows: $5,000 to XYZ trust, $2,000 to beneficiary A, and $3,000 to beneficiary B. Beneficiaries A and B make their returns on the basis of a calendar year.
(2) Under this section, the WIN expenses are apportioned to XYZ trust and to its beneficiaries as follows:
| WIN employees | 1 | 2 | 3 | 4 | 5 | Total |
|---|---|---|---|---|---|---|
| Total WIN expenses | $6,000 | $5,000 | $4,000 | $4,000 | $3,000 | |
| XYZ Trust: $5,000/10,000 | 3,000 | 2,500 | 2,000 | 2,000 | 1,500 | $11,000 |
| Beneficiary A: $2,000/10,000 | 1,200 | 1,000 | 800 | 800 | 600 | 4,400 |
| Beneficiary B: $3,000/10,000 | 1,800 | 1,500 | 1,200 | 1,200 | 900 | 6,600 |
Assume that beneficiary A hired a WIN employee during his taxable year 1972 and incurred $6,000 in wages. Also, assume that beneficiary B did not hire WIN employees during his taxable year 1972 and that beneficiaries A and B did not own any interests in other trusts, estates, partnerships, or electing small business corporations that hired WIN employees. The WIN expenses of XYZ trust are $11,000, of beneficiary A are $10,400, and of beneficiary B are $6,600.
(3) In the case of XYZ trust, the $25,000 amount specified in section 50A(a)(2) is reduced to $12,500, computed as follows: (i) $25,000 multiplied by (ii) $11,000 (WIN expense apportioned to the trust), divided by (iii) $22,000 (total WIN expenses apportioned among such trust ($11,000), beneficiary A ($4,400), and beneficiary B ($6,600)).
The facts are the same as in example 1 except that beneficiary A's interest is reduced to zero. Under paragraph (a)(2) for purposes of determining the period of employment that may be taken into account by XYZ trust and by beneficiary B, the initial date of employment of the WIN employees relates back to the date they were first employed.
[38 FR 6163, Mar. 7, 1973]
Terms defined here
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Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
Regulations it cites
- § 1.50B-1 Definitions of WIN expenses and WIN employees.
- § 1.50A-3 Recomputation of credit allowed by section 40.
- § 1.50A-6 Estates and trusts.
Cited by 2 other regulations
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.
- Issued (38 FR 6163)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Rules for computing credit for expenses of work incentive programs