Page:United States Statutes at Large Volume 43 Part 1.djvu/307

 276 V SIXTY-EIGHTH CONGRESS. Srzss. I. Ch. 234. 1924. ¤*¤¤¤ *¤· or trust shall be computed in the same manner and on the same basis as provided in section 212, except that- _ _ _ (1) There shall be allowed as a deduction _(1n lieu of the deduc- $:¤9°¥¤°¤°“¤*i¤“°¤· tion authorized by paragraph (10) of subdivision (a) of section 214) any part of the gross income, without_l1m1tation, wh1ch pursuant to the terms of the will or deed creating the trust, IS during the taxable year paid or permanently set aside for_tl1e purposes and in 214, or is to be used exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals or for the estabhshment, acquisition, mamtenance or operation of a public cemetery not operated for profit; , ·*d*““°§§‘Q§t°,‘}§\§{§g‘,} (2) There shall be allowed as an additional deduction in com- ¤`·irbc$]ii¤ri¤s. puting the net income of the estate or trust the amount of the income of the estate or trust for its taxable year which IS to be distributed ciu·rently by the fiduciary to the beneficiaries, and the amount of the income collected by a guardian of an infant which is to be held or distributed as the court ma direct, but the amount so allowed as a deduction shall be includecl in computing the net income of the R°m°"°°‘ beneficiaries whether distributed to them or not. Any amount allowed as a deduction under this paragraph shall not be allowed as a deduction under paragraph (3) in the same or any succeeding tax— able ear• m·*•*°*“°¤¤}8d$.Qgd°§2: (3;, In’the case of mcoine received by estates of deceased persons credited to umm:. during the period of admunstration or settlement of the estate, and °°°°' in the case of income which, in the discretion of the fiducia, may . be either distributed to the beneficiary or accumulated, there lsliall be allowed as an additional deduction in computing the net income of the estate or trust the amount of the income of the estate or trust for its taxable year which is properly paid or credited durin such year to any legatee, heir, or beneficiary, but the amount so a§owed as a deduction shall be included in computing the net income of the legatee heir, or beneficiary. ,,,§,§;f'Q{}§§u2°,§§'gY“ (c) l3`or the purpose of the normal tax the estate or trust shall be a lowed the same credit as is allowed to a single person under subdivision (c) of section 216, and, if no part of the income of the estate or trust is included in computing the net income of any legatee, heir, or beneficiary, then in addition the same credits as are allowed by subdivisions (a) and (b) of section 216. ¤cfsj$;§*§;“Q•;'I;•;;)gg,j‘9i (d) If any part of the income of an estate or trust is included mma in computing the net income of any legatee, heir, or beneficiary, such legatee, heir, or beneficiary, shall, for the purpose of the normal tax, ·. be allowed as credits, in addition to the credits allowed to him under section 216, his proportionate share of such amounts specified in subdivisions (:1) and (b) of section 216 as are, under this section, required to e included in computing his net income. Any remaining portion of such amounts specified in subdivisions (a) and (b) of section 216 shall, for the purpose of the normal tax, be allowed F t { it m_ as credits to the estate or trust. _ ,,ba°§§~,’}L?,;‘f,’§,tE,,,¤d (e) If the taxable year of a beneficiary is different from that of or trust for its taxable year ending within his taxable year. foygkiggggg ¢¤¤§gg (f) A trust created by an employer as a part of a stock bonus or mee. profit-sharing plan for the exclusive benefit of some or all of his employees, to which contributions are made by such employer, or employees, or both, for the purpose of distributing to such employees the earnings and principal of the fund accumulated by the trust in accordance with such p an, shall not be taxable under this
 * ""‘·”·2"· the manner specified in paragrap (10) of subdivision (a.) of section
 * >¤¤¤¤¤¤¤Y<i*¤¤*- the estate or trust, the amount which he is required, under paragraph (2) of subdivision (b) of this section, to include in computing his net income, shall be based upon the income of the estate