Page:United States Statutes at Large Volume 49 Part 1.djvu/1752

 74 Th CONGRESS. SESS. II. CH. 690 . JUNE 22, 1936. 1707 SEC. 163. CR EDITS AGAINST NET INCOME. C redit s again st net incom e. (a) CREDITS OF ESTATE OR TRUST .-For the purpose of the normal E state s or trusts, tax and the surtax the estate or trust shall be allowed the same credits of. personal exemption as is allowed to a single person under section 25 (b) (1), and, if no part of the income of the estate or trust is Ante, p .1662. included in computing the net income of any legatee, heir, or bene- ficiary, then in addition the same credits against net income for interest as are allowed by section 25 (a). (b) CREDITS OF BENEFICIARY.-If any part of the income of an Credits of beneficiary estate or trust is included in computing the net income of any in c omput ing i ncome. legatee, heir, or beneficiary, such legatee, heir, or beneficiary shall, 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, Ante,p.1662. his proportionate share of such amounts of interest specified in section 25 (a) as are, under this Supplement, required to be included in computing his net income. Any rem ainin g por tion of su ch Allow ance as cred its. amounts specified in section 25 (a) shall, for the purpose of the normal tax, be allowed as credits to the estate or trust. SEC. 164. DIFFERENT TAX ABL E YEARS. Different taxabl e years. If the taxable year of a beneficiary is different from that of the able oyeara of esta e` aor estate or trust, the amount which he is required, under section 162 trust and beneficiary (b), to include in computing his net incme, sall be based upon differ. the income of the estate or trust for any taxable year of the estate or trust (whether beginning on, before, or after January 1, 1936) ending within his taxable year. SEC. 165. EMPLOYEES' TRUSTS. 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 by the trust in a ccord ance with such plan, shal l not be t axabl e und er section 161, but the amount ac tually distribu ted or made ava ilable to any distribut ee shall be ta xable to him in the year in wh ich so distributed or made available to the extent that it exceeds the amou nts paid in by him. Su ch di strib utees shal l for the purpo se of the normal tax be allowed as credits against net income such part of the amount so distributed or made available as represents the items of interest specified in section 25 (a). SEC. 166. R EVOCA BLE T RUSTS. Where at any time the power to revest in the grantor title to any part of the corpus of the trust is vested- (1) in the grantor, either alone or in conjunction with any per- son not having a substantial adverse interest in the disposition of such part of the corpus or the income therefrom, or (2) 1n 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. INC OME FOR BEN EFI T 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 subst antial adverse interes t in the dispos ition of such p art Employees' trusts. Profit-sharing trusts, etc ., for employees not ta xed . Distributees tax ed on amount received. Cred its allo wed. Ante, p. 1662. Revocable trusts. Computation of in- co me with granto r's net income. Inco me for benefit of grantor. When he ld for future distr ibut ion.