Page:United States Statutes at Large Volume 48 Part 1.djvu/755

 73d C ONGRESS. SESS. II. CH. 277 . MAY 10, 1934 . 729 net income, in addition to the credits allowed to him under section 25, his proportionate share of such amounts of dividends and inter- est spe cified in sect ion 25 (a) as are, u nder t his Sup plement, requ ired to be included in computing his net inco me. Any remaining por- tion of such amounts specified in section 25(a) shall, for the pur- pose of the normal tax, be allowed as credits to the estate or trust. SEC. 164. DIFFERENT TAXABLE YEARS. If the taxable year of a beneficiary is different from that of the estate or trust, the amount which he is required, under section 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 (whether beginning on, before, or after January 1, 1934) ending within his taxable year. SEC. 165. EMPL OYEES' TRUST S. Employees' trusts. INCOME TAX. ESTATES AND TR USTS. -Co ntd. Ante, p. 692. Allowance as credits to estate, etc. Different years. Computation if tax- able year of estate or trust and beneficiary differ. Ante, p . 692 . taxable A trust created by an employer as a part of a stock bonus, pen- sion, or 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 b y the trust in accordance with such plan, shall not be taxable under section 161, but the amount actually distributed or made available Ante, p. 727. Distributees t axe d to any distributee shall be taxable to him in the year in which so on amount received. distributed or made available to the extent that it exceeds the amounts paid in by him. Such distributees shall for the purpose of the normal tax be allowed as credits against net income such credits. part of the amount so distributed or made available as re resents the items of dividends and interest specified in section 25(a). SEC. 166. REVOCABLE TRUSTS. Where at any time the power to revest in the grantor title to part of the corpus of the trust is vested- (1) in the grantor, either alone or in conjunction with any person not having a substantial adverse interest in the disposition of such part of the corpus or the income therefrom, or (2) in any person not having a substantial adverse interest in the disposition of such part of the corpus or the income therefrom, then the income of such part of the trust shall be included in com- puting the net income of the grantor. SEC. 167. INCOME FOR BENEFIT OF GRANTOR. (a) Where any part of the income of a trust- (1) is, or in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income may be, held or accumulated for future distribu- tion to the grantor ; or (2) may, in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income, be distributed to the grantor ; or (3) is, or in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income may be, applied to the payment of premiums upon policies of insurance on the life of the grantor (except pol- icies of insurance irrevocably payable for the purposes and in the manner specified in section 23 (o), relating to the so-called " char- itable contribution" deduction) ; then such part of the income of the trust shall be included in computing the net income of the grantor. Profit-sharing trusts, etc., for employees, not taxed. Revocable trusts. Inco me therefr om any comp uted with gr ant- or's net income. Income for benefit of grantor. When held for future distr ibution. When distributed to grantor . Application to life insurance premiums. Ante, p. 690.