Page:United States Statutes at Large Volume 45 Part 1.djvu/890

 SEVENTIETH CONGRESS. SESS. I. Ca. 852. 1928. 839 distributed as the court may direct, but the amount so allowed as a TNCOME TAX deduct ion sh all be inclu ded in compu ting th e net income of th e bene - ficiaries whether distributed to them or not. Any amount allowed Limi tatio n. as a deduct ion un der th is par agraph shall not be allow ed as a dedu c- tion under subsection (c) of this section in the same or any succeed- ing taxable year ; c In the case of income received b estates of deceased arsons Addi tiona l dma e- y pe rsons t, for payment de during the period of administration or settlement of the estate, and or, credited to bene- in the case of income which, in the discretion of the fiduciary, may fic' ' es ' be eit her di stribu ted to the b enefic iary or accum ulated, ther e shal l 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 during such year t o any legate e, hei r, or benefi ciary, but th e amou nt so allowe d Included in income of as a deduction shall be included in computing the net income of beneficiary. the legatee, heir, or beneficiary. SEC. 163 . CREDIT S AGAIN ST NET INCOME. Credits against net income. a Credits of estate or trust .-For the purpose of the normal Normal tax personal ( ~ exemptions allowed to tax th e esta te or trust shall be all owed th e same perso nal ex emptio n heirs, etc . as is allowed to a single person under section 25(c), and, if no Aate, p. sco . 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 against net income for dividends and interest as Ant,, p. soy. are allowed by section 25(a) and (b) . Creditsallowedbene- (b) Credits of beneficiary.-If any part of the income of an ficiaries in computing estate or trust is included in computing the net income of any income . legatee, heir, or benefici ary, such legatee, heir, o r benefic iary shal l, for the purpose of the normal tax, be allowed as credits against net income, in addition to the credits allowed to him under section 25, his proportionate share of such amounts of dividends and interest specified in section 25(a) and (b) as are, under this Supplement, Credits allowed es- required to be included in computing his net income. Any re- tate or trust. maining portion of such amounts specified in section 25(a) and (b) shall, for the purpose of the normal tax, be allowed as credits to the estate or trust. Different taxable SEC. 164. DIF FERE NT T AXAB LE YEARS. years. Computation, if tax- If the taxable year of a beneficiary is different from that of the able year of estate or trust and beneficiary estate or trust, the amount which he is required, under section differ. 162 (b) , to include in computing his net income, shall be based upon the income of the estate or trust for any taxable year of the estate or trust ending within his taxable year. Emplo yees ' tru sts . SEC. 165. EMPLOYEES' TRUSTS. Profit-sharing trusts, A trust created by an employer as a part of a stock bonus, pension, ett c xedfor employees not or profit-sharing plan for the exclusive benefit of some or all of his emplo yees, to w hich cont ribut ions are made by s uch e mploy er, 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 plan, shall not be taxable under section 161, but the amount contributed to such fund by the employer Distributees taxed on and all earnings of such fund shall be taxed to the distributee in Fount received . the year in which distributed or made available to him. Such distributees shall for the purpose of the normal tax be allowed Ciedi a llowed. a s credits against net income such part of the amount so distributed or ma de ava ilable as re presen ts the items of div idends and i nteres t Ante, pp. 805, 806. specified in section 25(a) and (b).

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