[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.273-1]

[Page 600]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.273-1  Life or terminable interests.

    Amounts paid as income to the holder of a life or a terminable 
interest acquired by gift, bequest, or inheritance shall not be subject 
to any deduction for shrinkage (whether called by depreciation or any 
other name) in the value of such interest due to the lapse of time. In 
other words, the holder of such an interest so acquired may not set up 
the value of the expected future payments as corpus or principal and 
claim deduction for shrinkage or exhaustion thereof due to the passage 
of time. For the treatment generally of distributions to beneficiaries 
of an estate or trust, see Subparts A, B, C, and D (section 641 and 
following), Subchapter J, Chapter 1 of the Code, and the regulations 
thereunder. For basis of property acquired from a decedent and by gifts 
and transfers in trust, see sections 1014 and 1015, and the regulations 
thereunder.