§959 . TITLE 26.--—INT£ 262 shallt receive the benefit of the deductions and. credits allowedln this title only by»§l1¤g or causing to be Bled with
the collector a true and accurate rjetupn of hfé total income
l received from all sources in the United States, in the manner prescribed in this title; including therein all the information which the commissioner may deem necessary for the calculation of such deductions and creqitsi · ‘ ‘· . _ ` (2) The bcneht of the credits allowed in silbdivisions"-(d) uml (el of section 216, and of the reduced rateof tax iarovided for in subdivision (b) of section 210, may, in the discretion of the commissioner and mlder reglilaclcns prescribed, by him with _ the apgtoiral of the _ Secretary, be received by 21 nonresident alleaiindividual entitled thereto, bi filing a claim therefor with the withhbldiag agent. (Feb.'28, 1926, c. 27; § _2l7, 44 Stat. 30.) See note at beginning cg this chapter. ‘ . · A "Thl,s tit1c," mentioned in the text constitutes this chapter-ot this sugplemenm title. Sections 210, 216, and 262 mentioned lu me rm are set out m 55*951, 957,·uud 1030, respectively. at this wpplemeaul title. ° -- . · _ - 959. »Partaerships; credits; net incéme.-—-(a) Individuals carrying on business in partnership shall be liable ter income tax only in their ihdlvidual—capacity._ There shall be included) in cempatiug the net income ot each partner his distributive share, whether dietclbgnted or het, of the ·net income of the partnership for the taxable year, cr, it his net income for such taxable year is computed upoa the basis ez aperiod ’dil'£ereut from that pppnf the basis `ket which the pet income of the partnership is cemputed; they his dietributike share of the net inc0me· ct the _ partnership for any accounting period pt the partnership ending within the taxable! year up011' the basis of which the partner}; net income is b 1 - tl ` (b) The partner sha11,.for the ’pu;·pose of the normal `tax, be allowed as credits, in addition to the credits allowed to hm; under section 216, his proportionate share of such amounts epeelaed in sul)divisions~ (a) and _(‘b) ot- section 216 as..are t· rwived by the partnership. · j l _ (c) The netiincome otcthe partnership shall be computed in tm same manner and on the same basis aQs provided in section 212 except that the deduction provided -111 paragraph .(10) of Qabdlvisica (a) of section 214 shall not be allowed. (Feb. 2§, { 1928, 0.21, $`218,44Stat.32.) ‘ _ J " l See note at beglmllugcf this` chapter. ~ . Sections 212, 214,_a¤d 216 mentioned in the text, age set out in $5 @53, 955, me $57, respectively, ot this supplemental title. t er Prvmrty held i¤_ trust; net incomes.; stack bans as prét havin: =Pl!¤; revesting cr distributim .0f tm•ti.····——·(a) The tax imposed! by ,Parte‘I and _II ot this title » @$1 agely cp the ieceme ee eemtes ·0j.· ct any kind ‘0f·_,prepe1vty ` held in including--; ‘ , ·
(1) Income · accumulated in trust for the beneit of , unborn
.01- unxrtalned ‘m;·a0us or pemmis» with ctmtlngexlt interests, and income aecmmxlated el- held tb: tutuxte dlatrlbution under the terms ctthewlllcr truét; { lv .- ` (2) {meme which is te- be ilietrlbuted currently by the Educlary to the beaeaciariw, and income collected by a _ guard— lad ct an infant which is to be held or distributed as the ceurt- may direct: °_ _ ’ `Z " (3) income recdvfed b_g_ estates qt deceaéed p@nq during the pexjied ct administration or settlement ct the estate; and (4) Income wh1&,_ in the dlscretlcn bt the ddumry, may be either dlétribuwd to the beaeaclarles ez accamulategl. ~· tb) Q Except as otherwise pmmea ln aulbclivieiea (5) and (b); the tax' shall be computed u-pea the act laeeme et the estate or and shall be paid by the éiluclary. ‘ The det iegcmect estate or trust shall be computed ia the mme maauer audlen the same basis qs prbvided in 'aectlcm 212; (1)· There shalt be allevs*ed` as a deductlea (ia lieu et the deduction authorized by paragraph ( 10) of subdtvmea (A)
JRNAL REYENUE 1986 of section 214) "any part ref the gross income, witbo t limim-' tion, which pursuant tc the terms of the will or ‘ the. -t1'\1S('., is during the taxable year paid or permanently net W _ nside for the. purposes and in the manner specfiled in paragraph I(10) · of subdiviuion (nl) of section 214, or `is to be used exclusively ter rellgiousQ charitable, scientiuc, literary, or educational purposes, or for the prcventiein Auf cruelty to chil- * dren or animals, or for the estéblishment, ?’ncquisition“, main- ` tcmuce or operation of n public cemetery not operated for . pruht ;` ’ a I , (2) There shall Le allowed ns 'an additional deduction in computing the net income qt the estate or trust the amount ot the income ot the estate or trust for its taxable year which is tb be distributed. currently Lby the fiduciary to the benenclaries, nad the amount of the income wllected by n guardian of an ·infant· which is to be held or distributed, as the court may direct, but the axnount no allowed as- a· dwncticn shall be included ~in computing the act income `qf me beneflclsriés whethendistributcd td them qr not, Any amount allowed as .u deduction under this paragraph shall not be nlluw§ ns a` · deduction, under paragraph (3) in tile same cr any succeeding taxable year; n _ “E ‘ l _ » _ I (3) In the cane of income received by estntesbf deceased peri h sons during fthe period ot administration or settlement of the estfate; and in the case of inceme which, in the discretion of the iiduciary, may be either distributed to tbe benetlclary nr nccumuluted, there shall be allowed ae nn additional deduction . in computing abc net income ct the estate or trust tlrc amount · cfgthe income of the estate or truet for ite taxable year whichis properly paid 0; credited during such year tu _ any legutee, heirybr 'benehclary, but the amount no nlloécd as fa dedmtion ehnll lm included in computing the net income 0t§tl1e legatee, heir, or beuehciary. _ . _ “I - _ Q (c) For the purpose of the normnl tax the estate unitrust shall be nlluwed the same credit as is allowed tc a single person under. subdivision (c) of section 216, gmdf it nu part of the ’ income of the estate nr tbnst is included in `curixputlng the net income bf any. lcgatee, -heir,'0r lneneuciaryy then. ln addltjen the snmc credits as nrc allowed by subdivisions tu) and ~(b) ei section 216. [ ‘ · ‘” · ; _ (cl) .It»-nnypurt ct the Income ot an estate or trust bs included in computing- the net income of any legntee, heir, or . benedclary, nucl:. legntee, heir, or bcuellcinry shall, for the purpcs; ot the‘n¢n·nial· tax, benllowed as credltg; in addition tu , the credits allowed to him under section 218, his proportionate snare ot such snuuuntn Specmed in subdivmons (a.) _ and (b) ef ` secticn.216 as nre; under this section, required} to be included lin computing his` net lncogne. Any remalulng portion at smb amounts emcldcd in nubdlvtnlons (n) and (b) nf section 216 'shall, for the purpose of the normal tax, be allowed as credits y `to the estate ur trust. L · r » (e)» It the taxable yenr 01 a benenclnry is dlqercnt from that ctytbe eethte or truét, the amount which be- is required. under wrngraplr (2) nt uubdlwlelen (b) ot this 'sectlqn, tu ’ include in computing his net income, shell be weed- upon the income of the mtnteor trust ter its taxable year ending within his taxable year. -‘ _ ’ · h ' ‘(t) A trust created by nn mpleyer as A part of a, stock ` bdnun, pension, er prontqharing plan for the exclusive benefit of sonzem all ct bis employew, te which eontrlbudons are mak by such emnloyer, ’cr employee;. cr both; for the ct · distributing to sneb employwe the and prlnclpnl of the fund accumulated by the trust ln accordance with sucky plan. Ghlll net ‘ be taxable under this section, but the ambunt actually dl@bu.md or made svailnble to any dlmdbutee shall be tnxnble tc nlm in the yedr in which sn distributed er made available tc the ektent tbat lt exceeds the amounts pqld ln bf
