[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.642(b)-1]

[Page 20]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.642(b)-1  Deduction for personal exemption.

    In lieu of the deduction for personal exemptions provided by section 
151:
    (a) An estate is allowed a deduction of $600,
    (b) A trust which, under its governing instrument, is required to 
distribute currently all of its income for the taxable year is allowed a 
deduction of $300, and
    (c) All other trusts are allowed a deduction of $100.

A trust which, under its governing instrument, is required to distribute 
all of its income currently is allowed a deduction of $300, even though 
it also distributes amounts other than income in the taxable year and 
even though it may be required to make distributions which would qualify 
for the charitable contributions deduction under section 642(c) (and 
therefore does not qualify as a ``simple trust'' under sections 651-
652). A trust for the payment of an annuity is allowed a deduction of 
$300 in a taxable year in which the amount of the annuity required to be 
paid equals or exceeds all the income of the trust for the taxable year. 
For the meaning of the term income required to be distributed currently, 
see Sec. 1.651(a)-2.