26 U.S.C. § 671 — Trust income, deductions, and credits attributable to grantors and others as substantial owners

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 162 words · no verdicts yet

in plain englishAI-generated · not legal advice

When this subpart treats a grantor or another person as the owner of part of a trust, that person’s taxable income and tax credits include the trust items attributable to that part. The rest of the trust remains subject to the listed subparts, and trust items are not included merely because someone controls the trust unless this subpart says so.

If this subpart says that a grantor or another person is treated as the owner of part of a trust, the income, deductions, and tax credits of the trust that belong to that part must be included when calculating that person’s taxable income and tax credits, to the extent this chapter would count those items in calculating an individual’s taxable income or tax credits. Any part of the trust that remains is governed by subparts A through D. Trust items may not be included in the grantor’s or another person’s taxable income or tax credits only because that person controls the trust under section 61 or another provision of this title, unless this subpart provides for it.

the actual law source: uscode.house.gov ↗public domain

Where it is specified in this subpart that the grantor or another person shall be treated as the owner of any portion of a trust, there shall then be included in computing the taxable income and credits of the grantor or the other person those items of income, deductions, and credits against tax of the trust which are attributable to that portion of the trust to the extent that such items would be taken into account under this chapter in computing taxable income or credits against the tax of an individual. Any remaining portion of the trust shall be subject to subparts A through D. No items of a trust shall be included in computing the taxable income and credits of the grantor or of any other person solely on the grounds of his dominion and control over the trust under section 61 (relating to definition of gross income) or any other provision of this title, except as specified in this subpart.

Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 226.)

history & why it existsrecord from the source credit

1954Enacted · Act of Aug. 16, 1954, ch. 736

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

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