§641. Imposition of tax

(a) Application of tax

The tax imposed by section 1(e) shall apply to the taxable 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 persons 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 fiduciary 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 and payment

The taxable income of an estate or trust shall be computed in the same manner as in the case of an individual, except as otherwise provided in this part. The tax shall be computed on such taxable income and shall be paid by the fiduciary.

(c) Exclusion of includible gain from taxable income

(1) General rule

For purposes of this part, the taxable income of a trust does not include the amount of any includible gain as defined in section 644(b) reduced by any deductions properly allocable thereto.

(2) Cross reference

For the taxation of any includible gain, see section 644.

(Aug. 16, 1954, ch. 736, 68A Stat. 215 ; Dec. 30, 1969, Pub. L. 91–172, title VIII, §803(d)(3), 83 Stat. 684 ; Oct. 4, 1976, Pub. L. 94–455, title VII, §701(e)(2), 90 Stat. 1579 ; May 23, 1977, Pub. L. 95–30, title I, §101(d)(8), 91 Stat. 134 .)

Amendments

1977-Subsec. (a). Pub. L. 95–30 substituted "section 1(e)" for "section 1(d)" in introductory provisions.

1976-Subsec. (c). Pub. L. 94–455 added subsec. (c).

1969-Subsec. (a). Pub. L. 91–172 substituted "The tax imposed by section 1(d)" for "The taxes imposed by this chapter on individuals".

Effective Date of 1977 Amendment

Amendment by Pub. L. 95–30 applicable to taxable years beginning after Dec. 31, 1976, see section 106(a) of Pub. L. 95–30, set out as a note under section 1 of this title.

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–455 applicable to transfers in trust made after May 21, 1976, see section 701(h) of Pub. L. 94–455, set out as a note under section 667 of this title.

Effective Date of 1969 Amendment

Amendment by Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1970, see section 803(f) of Pub. L. 91–172, set out as a note under section 1 of this title.

Cross References

Charitable trusts subject to tax, see section 511 of this title.

Income from an interest in an estate or trust as gross income, see section 61 of this title.

Rates of tax on individuals, see section 1 of this title.

Returns-

Estates and trusts, see section 6012 of this title.

Joint fiduciaries, see section 6012 of this title.

Taxable income defined, see section 63 of this title.