Page:United States Statutes at Large Volume 45 Part 1.djvu/931

 880 SEVENTIETH CONGRESS. SESS. I. CH. 852. 1928. REVENUE ACT OF 1928 (3) If the deduction has been claimed by the estate and also and thebenefiC ary, by the beneficiary, it shall be allowed to the estate (and not to the beneficiary) if the tax was actually paid by the legal repre- sentative of the estate to the taxing authorities of the jurisdic- tion imposing the tax ; and it shall be allowed to the beneficiary (and not to the estate) if the tax was actually paid by the beneficiary to such taxing authorities ; To the person p aying (4) If the deduction has not been claimed by the estate nor the tax, by the beneficiary, it shall be allowed as a deduction only to the person (either the estate or the beneficiary) by whom the tax was paid to such taxing authorities, and only if a claim for refund or credit is filed within the period of limitation properly applicable thereto ; Cl aims barre d by statute of limitations. (5) Notwithstanding the provisions of paragraphs (1), (2), (3), and (4) of this subsection, if the claim of the deduction by the estate is barred by the statute of limitations, but such claim by the beneficiary is not so barred, the deduction shall be allowed to the beneficiary, and if such claim by the beneficiary is barred by the statute of limitations, but such claim by the estate is not so barred, the deduction shall be allowed to the est ate. M ea n i n g o f (b) As used in this section, the term " claimed " means claimed- "claimed ." 1 In the return ; or (2) In a claim in abatement filed in respect of an assessment made on or before June 2, 1924. Prior cases not af- (c) This section shall not affect any case in which a decision fected. of the Board of Tax Appeals or any court has been rendered prior to the enactment of this Act, whether or not such decision has become final. Taxab ility of tru sts SEC. 704. TAXABILITY OF TRUSTS AS CORPORATIONS-RETROAC. as corporations. TIVE. Re turn by t axpa yer (a) If a taxpayer filed a return as a trust for any taxable year a trust and' taxable a lcor. prior to the taxable year 1925 such taxpayer shall be taxable as. a trust Y poration. for such year and not as a corporation, if such taxpayer was con- si dered to be taxabl e as a trust and n ot as a corpo ration eithe r (1) under the regulations in force at the time the return was made or at the time of the termination of its existence, or (2) under any rul- of the Commis sioner or an y duly autho rized o fficer of th e Bure au Interna l Reve nue ap plicab le to any of such y ears, and in terpre ta- tive of any provision of the Revenue Act of 1918, 1921, or 1924, which had not been reversed or revoked prior to the time the return was made, or under any such ruling made after the return was filed which had not been reversed or revoked prior to the time of the termination of the taxpayer's existence. Trust, at option of (b) For the purpose of the Revenue Act of 1926 and prior Reve- trustee, to be considered as a trust, the income nue Acts, a trust shall, at the option of the trustee exercised within taxable to beneficiaries . one year after the enactment of this Act, be considered as a trust con diti ons. the income of which is taxable (whether distributed or not) to the ben eficiarie s, and no t as an a ssociatio n, if suc h trust ( 1) had a single trustee, and (2) was created and operated for the sole purpose of liquidating real property as a single venture (with such powers of ad minist ration as ar e inci dental there to, inc luding the a cquisi tion, im prove ment, con serva tion, div ision , and sal e of such prope rty) , distributing the proceeds therefrom in due course to or for the benefit of the beneficiaries, and discharging indebtedness secured by the trust property, and (3) has not made a return for the taxable year as an association.

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