Page:United States Statutes at Large Volume 68A.djvu/257

 CH. 1—NORMAL TAXES AND SURTAXES

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(f) AMORTIZATION OF EMERGENCY OR GRAIN STORAGE F A C I L I T I E S. —

The benefit of the deductions for amortization of emergency and grain storage facilities provided by sections 168 and 169 shall be allowed to estates and trusts in the same manner as in the case of an individual. The allowable deduction shall be apportioned between the income beneficiaries and the fiduciary under regulations prescribed by the Secretary or his delegate. (g) DISALLOWANCE OF D O U B L E DEDUCTIONS.—Amounts allowable

under section 2053 or 2054 as a deduction in computing the taxable estate of a decedent shall not be allowed as a deduction in computing the taxable income of the estate, unless there is filed, within the time and in the manner and form prescribed by the Secretary or his delegate, a statement that the amounts have not been allowed as deductions under section 2053 or 2054 and a waiver of the right to have suchamounts allowed at any time as deductions under section 2053 or 2054. This subsection shall not apply with respect to deductions allowed under part II (relating to income in respect of decedents). (h) U N U S E D LOSS CARRYOVERS AND E X C E S S DEDUCTIONS ON TERMINATION AVAILABLE TO BENEFICIARIES.—If on the termination of an

estate or trust, the estate or trust has— (1) a net operating loss carryover under section 172 or a capital loss carryover under section 1212, or (2) for the last taxable year of the estate or trust deductions (other than the deductions allowed under subsections (b) or (c)) in excess of gross income for such year, then such carryover or such excess shall be allowed as a deduction, in accordance with regulations prescribed by the Secretary or his delegate, to the beneficiaries succeeding to the property of the estate or trust, (i) C R O S S R E F E R E N C E. — For disallowance of standard deduction in case of estates and trusts see section 142(b)(4). SEC. 643. DEFINITIONS APPLICABLE TO SUBPARTS A, B, C, AND D. (a) DISTRIBUTABLE N E T INCOME.—For purposes of this part, the

term *'distributable net income" means, with respect to any taxable year, the taxable income of the estate or trust computed with the following modifications— (1) DEDUCTION FOR DISTRIBUTIONS.—No deduction shall be taken under sections 651 and 661 (relating to additional deductions). (2) DEDUCTION FOR PERSONAL EXEMPTION.—No deduction shall be taken under section 642(b) (relating to deduction for personal exemptions). (3) CAPITAL GAINS AND LOSSES.—Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c). Losses from the sale or exchange of capital assets shall be excluded, except to the extent such losses are taken into account in determining the amount of gains from the sale or exchange of capital assets which are paid, credited, or required to be distributed to any beneficiary during the taxable year. The § 643(a)(3) 49012°—54

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