Treasury Regulations · 26 CFR
§ 1.852-1. Taxation of regulated investment companies.
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. § 852
Cite as 26 CFR § 1.852-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- April 28, 1962 by T.D. 6598
- Issued under
- 26 U.S.C. § 852
- Length
- 350 words · about 2 min to read
- Cross-references
- cites 4 Code sections and 5 regulations; cited by 5
¶(a) Requirements applicable thereto—
¶(1) In general. Section 852(a) denies the application of the provisions of part I, subchapter M, chapter 1 of the Code (other than section 852(c), relating to earnings and profits), to a regulated investment company for a taxable year beginning after February 28, 1958, unless—
¶(i) The deduction for dividends paid for such taxable year as defined in section 561 (computed without regard to capital gain dividends) is equal to at least 90 percent of its investment company taxable income for such taxable year (determined without regard to the provisions of section 852(b)(2)(D) and paragraph (d) of § 1.852-3); and
¶(ii) The company complies for such taxable year with the provisions of § 1.852-6 (relating to records required to be maintained by a regulated investment company).
See section 853(b)(1)(B) and paragraph (a) of § 1.853-2 for amounts to be added to the dividends paid deduction, and section 855 and § 1.855-1, relating to dividends paid after the close of the taxable year.
¶(2) Special rule for taxable years of regulated investment companies beginning before March 1, 1958. The provisions of part I of subchapter M (including section 852(c)) are not applicable to a regulated investment company for a taxable year beginning before March 1, 1958, unless such company meets the requirements of section 852(a) and subparagraph (1) (i) and (ii) of this paragraph.
¶(b) Failure to qualify. If a regulated investment company does not meet the requirements of section 852(a) and paragraph (a)(1) (i) and (ii) of this section for the taxable year, it will, even though it may otherwise be classified as a regulated investment company, be taxed in such year as an ordinary corporation and not as a regulated investment company. In such case, none of the provisions of part I of subchapter M (other than section 852(c) in the case of taxable years beginning after February 28, 1958) will be applicable to it. For the rules relating to the applicability of section 852(c), see § 1.852-5.
[T.D. 6598, 27 FR 4091, Apr. 28, 1962]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 852 Taxation of regulated investment companies and their shareholders
- § 561 Definition of deduction for dividends paid
- § 853 Foreign tax credit allowed to shareholders
- § 855 Dividends paid by regulated investment company after close of taxable year
Regulations it cites
- § 1.852-3 Investment company taxable income.
- § 1.852-6 Records to be kept for purpose of determining whether a corporation claiming to be a regulated investment company is a personal holding company.
- § 1.853-2 Effect of election.
- § 1.855-1 Dividends paid by regulated investment company after close of taxable year.
- § 1.852-5 Earnings and profits of a regulated investment company.
Cited by 5 other regulations
- § 1.852-5 Earnings and profits of a regulated investment company.
- § 1.853-1 Foreign tax credit allowed to shareholders.
- § 1.853-2 Effect of election.
- § 1.854-1 Limitations applicable to dividends received from regulated investment company.
- § 1.855-1 Dividends paid by regulated investment company after close of taxable year.
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 by T.D. 6598 (27 FR 4091)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Regulated investment companies and real estate investment trusts
Nearby sections
- § 1.851-4 Determination of status.
- § 1.851-5 Examples.
- § 1.851-6 Investment companies furnishing capital to development corporations.
- § 1.851-7 Certain unit investment trusts.
- § 1.852-1 Taxation of regulated investment companies.
- § 1.852-2 Method of taxation of regulated investment companies.
- § 1.852-3 Investment company taxable income.
- § 1.852-4 Method of taxation of shareholders of regulated investment companies.
- § 1.852-5 Earnings and profits of a regulated investment company.