[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: 26CFR1.584-3]

[Page 314]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.584-3  Computation of common trust fund income.

    The taxable income of the common trust fund shall be computed in the 
same manner and on the same basis as in the case of an individual, 
except that:
    (a) No deduction shall be allowed under section 170 (relating to 
charitable, etc., contributions and gifts);
    (b) The gains and losses from sales or exchanges of capital assets 
of the common trust fund are required to be segregated. A common trust 
fund is not allowed the benefit of the capital loss carryover provided 
by section 1212; and
    (c) The ordinary taxable income (the excess of the gross income over 
deductions) or the ordinary net loss (the excess of the deductions over 
the gross income) shall be computed after excluding all items of gain 
and loss from sales or exchanges of capital assets.

[T.D. 6500, 25 FR 11737, Nov. 26, 1960, as amended by T.D. 7935, 49 FR 
1694, Jan. 13, 1984]