[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: 26CFR1.682(b)-1]

[Page 325-326]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.682(b)-1  Application of trust rules to alimony payments.

    (a) For the purpose of the application of subparts A through D 
(section 641 and following), part I, subchapter J, chapter 1 of the 
Code, the wife described in section 682 or section 71 who is entitled to 
receive payments attributable to property in trust is considered a 
beneficiary of the trust, whether or not the payments are made for the 
benefit of the husband in discharge of his obligations. A wife treated 
as a beneficiary of a trust under this section is also treated as the 
beneficiary of such trust for purposes of the tax imposed by section 56 
(relating to the minimum tax for tax preferences). For rules relating to 
the treatment of items of tax preference with respect to a beneficiary 
of a trust, see Sec. 1.58-3.
    (b) A periodic payment includible in the wife's gross income under 
section

[[Page 326]]

71 attributable to property in trust is included in full in her gross 
income in her taxable year in which any part is required to be included 
under section 652 or 662. Assume, for example, in a case in which both 
the wife and the trust file income tax returns on the calendar year 
basis, that an annuity of $5,000 is to be paid to the wife by the 
trustee every December 31 (out of trust income if possible and, if not, 
out of corpus) pursuant to the terms of a divorce decree. Of the $5,000 
distributable on December 31, 1954, $4,000 is payable out of income and 
$1,000 out of corpus. The actual distribution is made in 1955. Although 
the periodic payment is received by the wife in 1955, since under 
section 662 the $4,000 income distributable on December 31, 1954, is to 
be included in the wife's income for 1954, the $1,000 payment out of 
corpus is also to be included in her income for 1954.

[T.D. 6500, 25 FR 11814, Nov. 26, 1960, as amended by T.D. 7564, 43 FR 
40495, Sept. 12, 1978]