Page:United States Statutes at Large Volume 40 Part 1.djvu/1089

SIXTY-FIFTH coivonnss. sm. III. cH. 18. 1919. 1071 ESTATES AND TRUSTS. ESg_'t‘g’gd’§6m, . Sec. 219. (a) That the tax imposed by sections 210 and 211 shall I""°'“°°°“°l°‘ apply to the income of estates or of any kind of property held in trust, including- _ _ (1) Income received by estates of deceased persons during the §dgn_du11ug8d‘ period of administration or settlement of the estate; _ (2) Income accumulated in trust for the benefit of unborn or T““°°°°"‘““m‘°’“‘ unascertained plersons or persons with contingent interests; (3) Income eld for future distribution under the terms of the t ijfgg ***1 ¤=¢¤¤> dis willortrust; and n mi _ _ (4) Income which is to be distributed to the beneficiaries periodi— ¤§,§?§$§’°1 °'s*“b‘* cally, whether or not at regular intervals, and the income collected by a dgruardian of an infant to be held or distributed as the court may ect. _ __ (b) The fiduciary shall be responsible for making the return of mii§p°°S`i°hty‘°rr° income for the estate or trust for which he acts. The net income of Puig *“°°”*° °°‘” the estate or trust shall be computed III the same manner and on i the same basis as provided in section 212, except that there shall _ also be allowed as a deduction (in lieu of the deduction authorized mm°pii%i1icc?'($i§:iiii°a¤if: by paragraph (11) of subdivision (a) of section 214) an part of °”°- the gross income which, pursuant to the terms of the or deed creating the trust, is during the taxable year paid to or permanently set asi e for the United States, any State, Territory, or any political subdivision thereof, or the District of Columbia, or an corporation organized and operated exclusively for religious, charitable, scientific, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual; and in cases under para- 0,*i‘{*';¤i“{{,‘u“,:°:' “‘“‘°“ graph (4) of subdivision (a) of this section the fiduciary shall include in the return a statement of each beneficia ’s distributive share of such net income, whether or not distributeilybefore the close of the taxable year for which the return is made. ‘ P b H _ (c) In cases under paragraph (1), (2), or (3) of subdivision (a) aqlymmt Y dm" the tax shall be imposed uipon the net income of the estate or trust _ and shall be aid by the ducia , except that in determining the m,”.T,‘;,°§,*..§T‘*°“°"°'°"* net income of) the estate of any ldreceased) pgibrson during the period of administration or settlement there may deducted the amount of an income properly paid or credited to any legatee, heir or other beneliisiary. In such cases the estate or trust shall, for the pur ose of the normal tax, be allowed the same credits as are alloweii to sin le ersons under section 216. (gd) lin cases under paragraph (4) of subdivision (a), and in the ,,i:,°°',’}f §{,,;’f{,'Q,°§$l§ case of any income of an estate during the period of administration **“°¤· °*°· or settlement permitted by subdivision (c) to be deducted from the ¤d'{,‘Q§,,‘T°° md by net income upon which tax is to be paid by the fiduciary, the tax shall not be paid by the tiduciary, but there shall be included in computing uxfm me the net income of each beneficiary his distributive share, w ether _ distributed or not, of the net income of the estate or trust for the taxable year, or, if his net income for such taxable vear is computed upon the basis of a period different from that upon the basis of which the net income of the estate or trust is compute , then his distributive share of the net income of the estate or trust for any accounting period of such estate or trust ending within the Hscal or calendar year upon the basis of which such beneticiarys net income is computed. In such cases the beneticia shall, for the p1u·pose of the normal tax, w;*ddi‘=*°“* °°‘“‘$» be allowed as credits in adlgtion to the credits allowed to him under section 216, his proportionate share of such amounts specified in subdivisions (a) and (b) of section 216 as are received by the estate or trust.