[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(d)-1]

[Page 47]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.642(d)-1  Net operating loss deduction.

    The net operating loss deduction allowed by section 172 is available 
to estates and trusts generally, with the following exceptions and 
limitations:
    (a) In computing gross income and deductions for the purposes of 
section 172, a trust shall exclude that portion of the income and 
deductions attributable to the grantor or another person under sections 
671 through 678 (relating to grantors and others treated as substantial 
owners).
    (b) An estate or trust shall not, for the purposes of section 172, 
avail itself of the deductions allowed by section 642(c) (relating to 
charitable contributions deductions) and sections 651 and 661 (relating 
to deductions for distributions).