[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.561-1]

[Page 296]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.561-1  Deduction for dividends paid.

    (a) The deduction for dividends paid is applicable in determining 
accumulated taxable income under section 535, undistributed personal 
holding company income under section 545, undistributed foreign personal 
holding company income under section 556, investment company taxable 
income under section 852, and real estate investment trust taxable 
income under section 857. The deduction for dividends paid includes:
    (1) The dividends paid during the taxable year;
    (2) The consent dividends for the taxable year, determined as 
provided in section 565; and
    (3) In the case of a personal holding company, the dividend 
carryover computed as provided in section 564.
    (b) For dividends for which the dividends paid deduction is 
allowable, see section 562 and Sec. 1.562-1. As to when dividends are 
considered paid, see Sec. 1.561-2.

[T.D. 6500, 25 FR 11737, Nov. 26, 1960, as amended by T.D. 6598, 27 FR 
4093, Apr. 28, 1962]