[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: 26CFR1.643(b)-2]

[Page 61]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.643(b)-2  Dividends allocated to corpus.

    Extraordinary dividends or taxable stock dividends which the 
fiduciary, acting in good faith, determines to be allocable to corpus 
under the terms of the governing instrument and applicable local law are 
not considered ``income'' for purposes of subpart A, B, C, or D, part I, 
subchapter J, chapter 1 of the Code. See section 643(a)(4), Sec. 
1.643(a)-4, Sec. 1.643(d)-2, section 665(e), paragraph (b) of Sec. 
1.665(e)-1, and paragraph (b) of Sec. 1.665(e)-1A for the treatment of 
such items in the computation of distributable net income.

[T.D. 7204, 37 FR 17134, Aug. 25, 1972]