Internal Revenue Code · 26 U.S.C.
§ 652. Inclusion of amounts in gross income of beneficiaries of trusts distributing current income only
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 652
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- October 4, 1976 by Pub. L. 94–455
- Length
- 3 subsections · 316 words · about 1 min to read
- Cross-references
- cites 1; cited by 1 Code section and 21 other regulations
- Regulations
- 9 issued under this section
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.
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.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 652
- § 1.652(a)-1 Simple trusts; inclusion of amounts in income of beneficiaries.
- § 1.652(a)-2 Distributions in excess of distributable net income.
- § 1.652(b)-1 Character of amounts.
- § 1.652(b)-2 Allocation of income items.
- § 1.652(b)-3 Allocation of deductions.
- § 1.652(c)-1 Different taxable years.
- § 1.652(c)-2 Death of individual beneficiaries.
- § 1.652(c)-3 Termination of existence of other beneficiaries.
- § 1.652(c)-4 Illustration of the provisions of sections 651 and 652.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 1 other section
Cited by 1 Code section
Cited in 21 regulations not issued under it
- § 1.1(i)-1T Questions and answers relating to the tax on unearned income certain minor children (Temporary).
- § 1.35-1 Partially tax-exempt interest received by individuals.
- § 1.58-3 Estates and trusts.
- § 1.71-1 Alimony and separate maintenance payments; income to wife or former wife.
- § 1.102-1 Gifts and inheritances.
- § 1.641(c)-1 Electing small business trust.
- § 1.642(a)(1)-1 Partially tax-exempt interest.
- § 1.642(a)(3)-1 Dividends received by an estate or trust.
- § 1.642(a)(3)-2 Time of receipt of dividends by beneficiary.
- § 1.682(b)-1 Application of trust rules to alimony payments.
- § 1.691(c)-2 Estates and trusts.
- § 1.871-10 Election to treat real property income as effectively connected with U.S. business.
- § 1.901-3 Reduction in amount of foreign taxes on foreign mineral income allowed as a credit.
- § 1.954-6 Foreign base company shipping income.
- § 1.1202-1 Deduction for capital gains.
- § 1.1312-5 Correlative deductions and inclusions for trusts or estates and legatees, beneficiaries, or heirs.
- § 1.1411-3 Application to estates and trusts.
- § 1.1411-4 Definition of net investment income.
- § 1.1411-10 Controlled foreign corporations and passive foreign investment companies.
- § 1.1446-3 Time and manner of calculating and paying over the 1446 tax.
- § 1.1451-1 Tax-free covenant bonds issued before January 1, 1934.
Amendment history
From the source credit and the official notes, newest first.
- Enacted by Pub. L. 94–455Parts changed in 1976: (b)
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter J Estates, Trusts, Beneficiaries, and Decedents
- Part I ESTATES, TRUSTS, AND BENEFICIARIES
- Subpart B Trusts Which Distribute Current Income Only
Nearby sections
- § 651 Deduction for trusts distributing current income only
- § 652 Inclusion of amounts in gross income of beneficiaries of trusts distributing current income only
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1976—Subsec. (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.