Internal Revenue Code · 26 U.S.C.
§ 671. Trust income, deductions, and credits attributable to grantors and others as substantial owners
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. § 671
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Length
- 168 words · about 1 min to read
- Cross-references
- cites 1; cited by 3 Code sections and 67 other regulations
- Regulations
- 5 issued under this section
Where it is specified in this subpart that the grantor or another person shall be treated as the owner of any portion of a trust, there shall then be included in computing the taxable income and credits of the grantor or the other person those items of income, deductions, and credits against tax of the trust which are attributable to that portion of the trust to the extent that such items would be taken into account under this chapter in computing taxable income or credits against the tax of an individual. Any remaining portion of the trust shall be subject to subparts A through D. No items of a trust shall be included in computing the taxable income and credits of the grantor or of any other person solely on the grounds of his dominion and control over the trust under section 61 (relating to definition of gross income) or any other provision of this title, except as specified in this subpart.
(Aug. 16, 1954, ch. 736, 68A Stat. 226.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 671
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 1 other section
Cited by 3 Code sections
- § 170(f)(2)(B) Charitable, etc., contributions and gifts
- § 678(a)(2) Person other than grantor treated as substantial owner
- § 684(b) Recognition of gain on certain transfers to certain foreign trusts and estates
Cited in 67 regulations not issued under it
- § 1.30D-4 Special rules.
- § 1.58-3 Estates and trusts.
- § 1.61-22 Taxation of split-dollar life insurance arrangements.
- § 1.102-1 Gifts and inheritances.
- § 1.121-1 Exclusion of gain from sale or exchange of a principal residence.
- § 1.139E-1 Tribal general welfare benefits.
- § 1.170A-6 Charitable contributions in trust.
- § 1.199A-6 Relevant passthrough entities (RPEs), publicly traded partnerships (PTPs), trusts, and estates.
- § 1.362-3 Basis of importation property acquired in loss importation transaction.
- § 1.367(a)-1T Transfers to foreign corporations subject to section 367(a): In general (temporary).
- § 1.421-1 Meaning and use of certain terms.
- § 1.468A-5 Nuclear decommissioning fund—miscellaneous provisions.
- § 1.468B-1 Qualified settlement funds.
- § 1.468B-5 Effective dates and transition rules applicable to qualified settlement funds.
- § 1.469-1T General rules (temporary).
- § 1.481-5 Eligible terminated S corporation.
- § 1.584-4 Admission and withdrawal of participants in the common trust fund.
- § 1.641(a)-0 Scope of subchapter J.
- § 1.642(d)-1 Net operating loss deduction.
- § 1.665(b)-1A Accumulation distributions.
- § 1.672(d)-1 Power subject to condition precedent.
- § 1.672(f)-1 Foreign persons not treated as owners.
- § 1.672(f)-4 Recharacterization of purported gifts.
- § 1.673(a)-1 Reversionary interests; income payable to beneficiaries other than certain charitable organizations; general rule.
Show 43 more
- § 1.674(a)-1 Power to control beneficial enjoyment; scope of section 674.
- § 1.675-1 Administrative powers.
- § 1.676(a)-1 Power to revest title to portion of trust property in grantor; general rule.
- § 1.677(a)-1 Income for benefit of grantor; general rule.
- § 1.678(a)-1 Person other than grantor treated as substantial owner; general rule.
- § 1.678(b)-1 If grantor is treated as the owner.
- § 1.679-1 U.S. transferor treated as owner of foreign trust.
- § 1.817-5 Diversification requirements for variable annuity, endowment, and life insurance contracts.
- § 1.871-7 Taxation of nonresident alien individuals not engaged in U.S. business.
- § 1.881-3 Conduit financing arrangements.
- § 1.883-4 Qualified shareholder stock ownership test.
- § 1.884-1 Branch profits tax.
- § 1.884-5 Qualified resident.
- § 1.897-1 Taxation of foreign investment in United States real property interests, definition of terms.
- § 1.958-1 Direct and indirect ownership of stock.
- § 1.958-2 Constructive ownership of stock.
- § 1.1291-1 Taxation of U.S. persons that are shareholders of section 1291 funds.
- § 1.1295-1 Qualified electing funds.
- § 1.1295-3 Retroactive elections.
- § 1.1296-1 Mark to market election for marketable stock.
- § 1.1298-1 Section 1298(f) annual reporting requirements for United States persons that are shareholders of a passive foreign investment company.
- § 1.1361-1 S corporation defined.
- § 1.1411-3 Application to estates and trusts.
- § 1.1441-1 Requirement for the deduction and withholding of tax on payments to foreign persons.
- § 1.1441-5 Withholding on payments to partnerships, trusts, and estates.
- § 1.1445-5 Special rules concerning distributions and other transactions by corporations, partnerships, trusts, and estates.
- § 1.1446(f)-1 General rules.
- § 1.1471-1 Scope of chapter 4 and definitions.
- § 1.1471-5 Definitions applicable to section 1471.
- § 1.1473-1 Section 1473 definitions.
- § 1.6011-18 Certain partnership related-party basis adjustment transactions as transactions of interest.
- § 1.6012-3 Returns by fiduciaries.
- § 1.6038-4 Information returns required of certain United States persons with respect to such person's U.S. multinational enterprise group.
- § 1.6038D-2 Requirement to report specified foreign financial assets.
- § 1.6038D-6 Specified domestic entities.
- § 1.6038D-7 Exceptions from the reporting of certain assets under section 6038D.
- § 1.6072-1 Time for filing returns of individuals, estates, and trusts.
- § 1.6418-2 Rules for making transfer elections.
- § 7.999-1 Computation of the international boycott factor.
- § 25.2702-5 Personal residence trusts.
- § 53.4940-1 Excise tax on net investment income.
- § 53.4968-3 Related organizations.
- § 301.6109-1 Identifying numbers.
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 E Grantors and Others Treated as Substantial Owners
Nearby sections
- § 671 Trust income, deductions, and credits attributable to grantors and others as substantial owners
- § 672 Definitions and rules
- § 673 Reversionary interests
- § 674 Power to control beneficial enjoyment
- § 675 Administrative powers
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Statutory Notes and Related Subsidiaries
Certain Entities Not Treated as Corporations
Pub. L. 99–514, title VI, § 646, Oct. 22, 1986, 100 Stat. 2292, as amended by Pub. L. 100–647, title I, § 1006(k), Nov. 10, 1988, 102 Stat. 3411, provided that:
“(a) General Rule.— For purposes of the Internal Revenue Code of 1986, if the entity described in subsection (b) makes an election under subsection (c), such entity shall be treated as a trust to which subpart E of part 1 of subchapter J of chapter 1 of such Code applies.“(b) Entity.— An entity is described in this subsection if—“(1) such entity was created in 1906 as a common law trust and is governed by the trust laws of the State of Minnesota,“(2) such entity is exclusively engaged in the leasing of mineral property and activities incidental thereto, and“(3) income interests in such entity are publicly traded as of October 22, 1986, on a national stock exchange.“(c) Election.—“(1) In general.— An election under this subsection to have the provisions of this section apply—“(A) shall be made by the board of trustees of the entity before January 1, 1991, and“(B) shall not be valid unless accompanied by an agreement described in paragraph (2).“(2) Agreement.—“(A) In general.— The agreement described in this paragraph is a written agreement signed by the board of trustees of the entity which provides that the entity will not acquire any additional property other than property described in subparagraph (B).“(B) Permissible acquisitions.— Property is described in this paragraph if it is—“(i) surface rights to property the acquisition of which—“(I) is necessary to mine mineral rights held on October 22, 1986, and“(II) is required by a written binding agreement between the entity and an unrelated person entered into on or before October 22, 1986,“(ii) surface rights to property which are not described in clause (i) and which—“(I) are acquired in an exchange to which section 1031 [probably means section 1031 of this title] applies, and“(II) are necessary to mine mineral rights held on October 22, 1986,“(iii) tangible personal property incidental to the leasing of mineral property and activities incidental thereto, or“(iv) part of any required reserves of the entity.“(3) Beginning of period for which election is in effect.— The period during which an election is in effect under this subsection shall begin on the 1st day of the 1st taxable year beginning after the date of the enactment of this Act [Oct. 22, 1986] and following the taxable year in which the election is made.“(4) Manner of election.— Any election under this subsection shall be made in such manner as the Secretary of the Treasury or his delegate may prescribe.“(d) Special Rules for Taxation of Trust.—“(1) Election treated as a liquidation.— If an election is made under subsection (c) with respect to any entity—“(A) such entity shall be treated as having been liquidated into a trust immediately before the period described in subsection (c)(3) in a liquidation to which section 333 of the Internal Revenue Code of 1954 (as in effect before the amendments made by this Act) applies, and“(B) for purposes of section 333 of such Code (as so in effect)—“(i) any person holding an income interest in such entity as of such time shall be treated as a qualified electing shareholder, and“(ii) the earnings and profits, and the value of money or stock or securities, of such entity shall be apportioned ratably among persons described in clause (i).The amendments made by subtitle D of this title [subtitle D (§§ 631–634) of title VI of Pub. L. 99–514, see Tables for classification] and section 1804 of this Act [see Tables for classification] shall not apply to any liquidation under this paragraph.“(2) Termination of election.— If an entity ceases to be described in subsection (b) or violates any term of the agreement described in subsection (c)(2), the entity shall, for purposes of the Internal Revenue Code of 1986, be treated as a corporation for the taxable year in which such cessation or violation occurs and for all subsequent taxable years.“(3) Trust ceasing to exist.— Paragraph (2) shall not apply if the trust ceases to be described in subsection (b) or violates the agreement in subsection (c)(2) because the trust ceases to exist.“(e) Special Rule for Persons Holding Income Interests.— In applying subpart E of part I of subchapter J of chapter 1 of the Internal Revenue Code of 1986 to any entity to which this section applies—“(1) a reversionary interest shall not be taken into account until it comes into possession, and“(2) all items of income, gain, loss, deduction, and credit shall be allocated to persons holding income interests for the period of the allocation.”