Page:United States Statutes at Large Volume 53 Part 2.djvu/621

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53 STAT.] 76TH CONG. , 1 ST SESS.-CH. 367-JULY 26, 1939 (4) Every estate or trust the net income of which for the tax- able year is $1,000 or over; (5) Every estate or trust the gross income of which for the taxable year is $5,000 or over, regardless of the amount of the net income. (b) JOINT FIDUCIARIES. -Under such regulations as the Commis- sioners may prescribe, a return by one of two or more joint fiduciaries and filed in the office of the assessor shall be sufficient compliance with the above requirement. Such fiduciary shall make oath (1) that he has sufficient knowledge of the affairs of the individual, estate, or trust for which the return is made, to enable him to make the return, and (2) that the return is, to the best of his knowledge and belief, true and correct. (c) LAW APPLICABLE TO FIDUCIARIES.- Any fiduciary required to make a return under this title shall be subject to all the provisions of law which apply to individuals. ESTATES AND TRUSTS SEc. 24. (a) APPLICATION OF TAx. -T he taxes imposed by this title upon individuals shall apply to the income of estates or of any kind of property held in trust, including- (1) income accumulated in trust for the benefit of unborn or unascertained person or persons with contingent interests, and income accumulated or held for future distribution under the terms of the will or trust; (2) income which is to be distributed currently by the fidu- ciary to the beneficiaries, and income collected by a guardian of an infant which is to be held or distributed as the court may direct; (3) income received by estates of deceased persons during the period of administration or settlement of the estate; and (4) income which, in the discretion of the fiduciary, may be either distributed to the beneficiaries or accumulated. (b) COMPUTATION OF TAx. - The tax shall be computed upon the net income of the estate or trust, and shall be paid by the fiduciary, except as provided in paragraph (e) of this section (relating to revocable trusts) and paragraph (f) of this section (relating to income for benefit of the grantor). (c) NET INCOME.- The net income of the estate or trust shall be computed in the sane manner and on the same basis as in the case of an individual, except that- (1) there shall be allowed as an additional deduction in com- puting the net income of the estate or trust the amount of the income of the estate or trust for its taxable year which is to be distributed currently by the fiduciary to the beneficiaries, and the amount of the income collected by a guardian of an infant which is to be held or distributed as the court may direct, but the amount so allowed as a deduction shall be included in computing the net income of the beneficiaries whether distributed to them or not. Any amount allowed as a deduction under this para- graph shall not be allowed as a deduction under subsection (2) of this section in the same or any succeeding taxable year; (2) in the case of income received by estates of deceased per- sons during the period of administration or settlement of the estate, and in the case of income which, in the discretion of the fiduciary, may be either distributed to the beneficiary or accumu- lated, there shall be allowed as an additional deduction in com- puting the net income of the estate or trust the amount of the income of the estate or trust for its taxable year, which is prop- Estate or trust with net income of $1,000 or over. Gross income of $5,000 or over. Joint fiduciaries. Law applicable to fiduciaries. Application of tax. Income accumu- lated in trust. Income for current distribution. Received drring es- tate administration. Discrllionary dis- tributiil, tc. ('Oetiill ltitii I ,pay- 11mit; exvfptioo. Ne<t inrome, c(lll- pllttion. Additional deduc- tions for current dis- tributions by fidu- ciary. Inclusion in net in- come of beneficiary. Limitation. Payments made or credited to benefi- ciary.