Internal Revenue Code · 26 U.S.C.
§ 661. Deduction for estates and trusts accumulating income or distributing corpus
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. § 661
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
- Last amended
- August 5, 1983 by Pub. L. 98–67
- Amendments
- 2 dated changes in the source credit
- Length
- 3 subsections · 340 words · about 1 min to read
- Cross-references
- cites 1; cited by 10 Code sections and 46 other regulations
- Regulations
- 6 issued under this section
The amount determined under subsection (a) shall be treated as consisting of the same proportion of each class of items entering into the computation of distributable net income of the estate or trust as the total of each class bears to the total distributable net income of the estate or trust in the absence of the allocation of different classes of income under the specific terms of the governing instrument. In the application of the preceding sentence, the items of deduction entering into the computation of distributable net income (including the deduction allowed under section 642(c)) shall be allocated among the items of distributable net income in accordance with regulations prescribed by the Secretary.
No deduction shall be allowed under subsection (a) in respect of any portion of the amount allowed as a deduction under that subsection (without regard to this subsection) which is treated under subsection (b) as consisting of any item of distributable net income which is not included in the gross income of the estate or trust.
(Aug. 16, 1954, ch. 736, 68A Stat. 220; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title III, §§ 302(b)(2), 308(a), Sept. 3, 1982, 96 Stat. 586, 591; Pub. L. 98–67, title I, § 102(a), Aug. 5, 1983, 97 Stat. 369.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 661
- § 1.661(a)-1 Estates and trusts accumulating income or distributing corpus; general.
- § 1.661(a)-2 Deduction for distributions to beneficiaries.
- § 1.661(b)-1 Character of amounts distributed; in general.
- § 1.661(b)-2 Character of amounts distributed when charitable contributions are made.
- § 1.661(c)-1 Limitation on deduction.
- § 1.661(c)-2 Illustration of the provisions of section 661.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 1 other section
Cited by 10 Code sections
- § 67(e)(2) 2-percent floor on miscellaneous itemized deductions
- § 642(i)(2) Special rules for credits and deductions
- § 643(a)(1) Definitions applicable to subparts A, B, C, and D
- § 662(a) Inclusion of amounts in gross income of beneficiaries of estates and trusts accumulating income or distributing corpus
- § 663(a) Special rules applicable to sections 661 and 662
- § 665(a)(1) Definitions applicable to subpart D
- § 666(a) Accumulation distribution allocated to preceding years
- § 677(b) Income for benefit of grantor
- § 678(c) Person other than grantor treated as substantial owner
- § 6166(g)(2)(B)(i) Extension of time for payment of estate tax where estate consists largely of interest in closely held business
Cited in 46 regulations not issued under it
- § 1.59A-3 Base erosion payments and base erosion tax benefits.
- § 1.199A-6 Relevant passthrough entities (RPEs), publicly traded partnerships (PTPs), trusts, and estates.
- § 1.613A-4 Limitations on application of § 1.613A-3 exemption.
- § 1.641(b)-3 Termination of estates and trusts.
- § 1.641(c)-1 Electing small business trust.
- § 1.643(a)-1 Deduction for distributions.
- § 1.645-1 Election by certain revocable trusts to be treated as part of estate.
- § 1.651(a)-1 Simple trusts; deduction for distributions; in general.
- § 1.651(a)-3 Distribution of amounts other than income.
- § 1.662(a)-2 Currently distributable income.
- § 1.662(c)-4 Illustration of the provisions of sections 661 and 662.
- § 1.663(a)-1 Special rules applicable to sections 661 and 662; exclusions; gifts, bequests, etc.
- § 1.663(a)-2 Charitable, etc., distributions.
- § 1.663(a)-3 Denial of double deduction.
- § 1.663(c)-1 Separate shares treated as separate trusts or as separate estates; in general.
- § 1.663(c)-5 Examples.
- § 1.665(a)-0 Excess distributions by trusts; scope of subpart D.
- § 1.665(a)-1 Undistributed net income.
- § 1.665(b)-1 Accumulation distributions of trusts other than certain foreign trusts; in general.
- § 1.665(b)-2 Exclusions from accumulation distributions in the case of trusts (other than a foreign trust created by a U.S. person).
- § 1.665(c)-1 Accumulation distributions of certain foreign trusts; in general.
- § 1.665(e)-1 Preceding taxable year.
- § 1.665(e)-2 Application of separate share rule.
- § 1.666(b)-1A Total taxes deemed distributed.
Show 22 more
- § 1.666(c)-1A Pro rata portion of taxes deemed distributed.
- § 1.666(c)-2A Illustration of the provisions of section 666 (a), (b), and (c).
- § 1.666(b)-1 Total taxes deemed distributed.
- § 1.666(c)-1 Pro rata portion of taxes deemed distributed.
- § 1.666(c)-2 Illustration of the provisions of section 666.
- § 1.668(a)-1A Amounts treated as received in prior taxable years; inclusion in gross income.
- § 1.668(b)-2 Illustration of the provisions of subpart D.
- § 1.669(a)-2 Rules applicable to section 669 computations.
- § 1.669(b)-1 Information requirements.
- § 1.665(a)-0A Excess distributions by trusts; scope of subpart D.
- § 1.665(a)-1A Undistributed net income.
- § 1.665(b)-1A Accumulation distributions.
- § 1.665(e)-1A Preceding taxable year.
- § 1.665(g)-2A Application of separate share rule.
- § 1.677(b)-1 Trusts for support.
- § 1.681(a)-2 Limitation on charitable contributions deduction of trusts with trade or business income.
- § 1.691(c)-2 Estates and trusts.
- § 1.1361-1 S corporation defined.
- § 1.1411-3 Application to estates and trusts.
- § 1.1446-3 Time and manner of calculating and paying over the 1446 tax.
- § 20.6166A-3 Acceleration of payment.
- § 53.4947-1 Application of tax.
Amendment history
From the source credit and the official notes, newest first.
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 C Estates and Trusts Which May Accumulate Income or Which Distribute Corpus
Nearby sections
- § 661 Deduction for estates and trusts accumulating income or distributing corpus
- § 662 Inclusion of amounts in gross income of beneficiaries of estates and trusts accumulating income or distributing corpus
- § 663 Special rules applicable to sections 661 and 662
- § 664 Charitable remainder trusts
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1983—Subsec. (a). Pub. L. 98–67 repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below.
1982—Subsec. (a). Pub. L. 97–248 provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, subsec. (a) is amended by inserting at end “For purposes of paragraph (1), the amount of distributable net income shall be computed without the deduction allowed by section 642(c).”. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 (this title) shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted.
1976—Subsec. (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.