[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: 26CFR1.651(a)-1]

[Page 96-97]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.651(a)-1  Simple trusts; deduction for distributions; in general.

    Section 651 is applicable only to a trust the governing instruments 
of which:
    (a) Requires that the trust distribute all of its income currently 
for the taxable year, and
    (b) Does not provide that any amounts may be paid, permanently set 
aside, or used in the taxable year for the charitable, etc., purposes 
specified in section 642(c),

and does not make any distribution other than of current income. A trust 
to which section 651 applies is referred to in this part as a ``simple'' 
trust. Trusts subject to section 661 are referred to as ``complex'' 
trusts. A trust may be a simple trust for one year and a complex trust 
for another year. It should be noted that under section 651 a trust 
qualifies as a simple trust in a taxable year in which it is required to 
distribute all its income currently and makes no other distributions, 
whether or not distributions of current income are in fact made. On the 
other hand a trust is not a complex trust by reason of distributions of 
amounts other than

[[Page 97]]

income unless such distributions are in fact made during the taxable 
year, whether or not they are required in that year.