Page:United States Statutes at Large Volume 42 Part 1.djvu/274

 246 SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. “‘°°‘“° "“· portion of the net income remaining undistributed at the close of its taxable year shall be accounted for by the stockholders of such corporation at the close of its taxable year in proportion to their respective s ares. t°D°°°m` This subdivision shall not be in effect after December 31, 1921. _In y£:§}{’,QQg§,‘;‘,,,2*§’f°“1 the case of a personal service corporation having a fiscal year beginmng in 1921 and ending in 1922, amounts_d1str1buted {prior to January Unwms An 1, 1922, to its stockholders out of earnings or dpro ts accumulated ` after December 31, 1920, shall be taxed to the istributeesj and the stockholders of record on December 31, 1921, shall be taxed upon their distributive shares of the difference (if any) between such distributive prohts and the portion of the corporation’s net income assignable to the calendar year 1921, determined in the_ manner provided in clause (1) of subdivision (c) of section 205 of this Act. E$*¤°¤¤¤¤d*¤¤¤· ‘ nsrxrrzs AND ·rnUs*rs. meemeuxeu. Sec. 219. (a) That the tax imposed by sections 210 and 211 shall apply tolth;iI;1§come of estates or of any kind of property held in trust, me u — Received eerie; ea. (1) Income received by estates of deceased persons diuing the “"“'“"°“°"· _ period of administration or settlement of the estate; rmeeeeeemmeaeee. (2) Income accumulated in trust for the benefit of unbom or unascertained persons or persons with contingent interests; _ u_g;}g°!{¤¤‘ ¤¤¤¤’¤ *1**- (3) Incoige held for uture distribution under the terms of the will ` or trust; an · m1;g**°'“°°¤Y ‘“·’°*b· (4) Income which is to be distributed to the beneficiaries periodi- ` cally, whether or not at regular intervals, and the income collected gy a guardian of an infant to be held or distributed as the court may irect. ,,ff§f’°"‘"’““"°"°‘ (b) The fiduciary shall be responsible for making the return of Ijggge i¤<=<>¤¤¤ wm- income for the estate or trust for which he acts. The net income of Pu the estate or trust shall be computed in the same manner and on the same basis as provided in section 212, except that (in lieu of the deduction authorized by paragraph (11) of sullwdivision (a) of section w;%°§,3§°¤Z;;,{,1,{n°Y°d 214) there shall also be allowed as a deduction, without limitation, any part of the gross income which, pursuant to the terms of the will or deed creating the trust, is during the taxable year paid or permanently set aside for the purposes and in the manner specified in ,,,$§§§§'{,’§{‘§,§' sh"'°‘ paragraph (11) of subdivision (a) of section 214. In cases in which there is any income of the class described in paragraph (4) of subdivision (a) of this section the fiduciary shall inclu e in the return a statement of the income of the estate or trust which, (pursuant to the instrument or order governing the distribution, is istributable to eachbbeneficiary, nglheitlhelxi or not distribgtcd before the close of the taxa le ear for w ic the return is ma e. · ugsrmenu by Mwi- (C) Inyceses under Earagraghs (1), (2), or (3) of subdivision (a) or ` in any other case wit in sub ivision (a) of tlus section_except paragraph (4) thereof the tax shall be imposed upon the net income of the ,,£°,fo‘§,F‘_§“°°““°'°‘*‘ estate or trust and shall be paid by the duciary, except that in ° determining the net income of the estate of any deceased person during the period of administration or settlement there may be deducted the amount of any income roperly paid or credited to any legatee, heir, or other beneficiary. fii such cases the estate or trust _ shall, for the urpose of the normal tax, be allowed the same credits as are allowed) to single persons under section 216. ¤,,§?§m§P°§i,Kel§2r‘Z‘Z (d) In cases under paragraph (4) of subdivision (a), and in the °*”“'°“- case of any income of an estate during the period of administration or settlement permitted by subdivision (c) to be deducted from the net income upon which tax is to be paid by the fiduciary, the tax