[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: 26CFR1.652(a)-1]

[Page 98-99]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.652(a)-1  Simple trusts; inclusion of amounts in income of 
beneficiaries.

    Subject to the rules in Sec. Sec. 1.652(a)-2 and 1.652(b)-1, a 
beneficiary of a simple trust includes in his gross income for the 
taxable year the amounts of income required to be distributed to him for 
such year, whether or not distributed. Thus, the income of a simple 
trust is includible in the beneficiary's gross income for the taxable 
year in which the income is required to be distributed currently even 
though, as a matter of practical necessity, the income is not 
distributed until after the close of the taxable year of the trust. See 
Sec. 1.642(a)(3)-2 with respect to time of receipt of dividends. See 
Sec. 1.652(c)-1 for treatment of amounts required to be distributed 
where a beneficiary and the trust have different taxable years. The term 
income required to be distributed currently includes income required to 
be distributed currently which is in

[[Page 99]]

fact used to discharge or satisfy any person's legal obligation as that 
term is used in Sec. 1.662(a)-4.