26 U.S. Code § 678 - Person other than grantor treated as substantial owner
Subsection (a) shall not apply to a power which enables such person, in the capacity of trustee or cotrustee, merely to apply the income of the trust to the support or maintenance of a person whom the holder of the power is obligated to support or maintain except to the extent that such income is so applied. In cases where the amounts so applied or distributed are paid out of corpus or out of other than income of the taxable year, such amounts shall be considered to be an amount paid or credited within the meaning of paragraph (2) of section 661(a) and shall be taxed to the holder of the power under section 662.
Subsection (a) shall not apply with respect to a power which has been renounced or disclaimed within a reasonable time after the holder of the power first became aware of its existence.
For provision under which beneficiary of trust is treated as owner of the portion of the trust which consists of stock in an S corporation, see section 1361(d).
2000—Subsec. (e). Pub. L. 106–554 substituted “an S corporation” for “an electing small business corporation”.
1983—Subsec. (e). Pub. L. 97–448 added subsec. (e).
1976—Subsec. (b). Pub. L. 94–455 substituted “if the grantor of the trust or a transferor (to whom section 679 applies) is otherwise treated as the owner under the provisions of this subpart other than this section” for “if the grantor of the trust is otherwise treated as the owner under sections 671 to 677, inclusive”.
Amendment by Pub. L. 97–448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97–34, to which such amendment relates, see section 109 of Pub. L. 97–448, set out as a note under section 1 of this title.
Written determinations for this section
These documents, sometimes referred to as "Private Letter Rulings", are taken from the IRS Written Determinations page; the IRS also publishes a fuller explanation of what they are and what they mean. The collection is updated (at our end) daily. It appears that the IRS updates their listing every Friday.
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- Power to Vest Corpus or Income in Self : 2016-08-12
- Disposition of Certain Life Estates : 2011-04-29
- Qualified Terminable Interest Property : 2011-04-29
- Valuation : 2011-04-29
- Charitable Remainder Unitrust : 2011-04-29
- Unitrusts : 2011-04-29
- Special Rule for Charitable Remainder Trusts : 2011-04-29
- Transfers Not Exclusively for Charitable Purposes : 2011-04-29
- Definitions : 2010-10-01
- Grantor Trusts : 2010-10-01
- Trust Income, Deductions, and Credits Attributable to Grantors and OthersAs Substantial Owners : 2009-12-04
- Gross Income v. Not Gross Income : 2009-01-02
- Post-1942 Powers : 2009-01-02
- Imposition of Gift Tax Imposed v. Not Imposed : 2009-01-02
- Certain Trusts Permitted as Shareholders : 2008-10-03
- Borrowing Without Adequate Consideration : 2008-10-03
- Income for Benefit of Grantor : 2006-02-10
- Property in Which Decedent Had an Interest : 2006-02-10
- Valuation of Gifts : 2006-02-10
- Income for Benefit of Grantor : 2006-01-20
- Property in Which Decedent Had an Interest : 2006-01-20
- Valuation of Gifts : 2006-01-20
- Rollover Contributions : 2005-12-09
- Persons Treated as Grantors : 2005-12-09
- Individual Retirement Accounts : 2005-12-09
- Power to Vest Corpus or Income in Self : 2005-12-09
- Irrevocable Trusts : 2005-12-02
- Income for Benefit of Grantor : 2005-12-02
- Administrative Powers : 2005-12-02
- Power to Control Beneficial Enjoyment : 2005-12-02
- Definitions and Rules : 2005-12-02
- Irrevocable Trusts : 2005-11-18
- Irrevocable Trusts : 2005-11-18
- Tax On Generation Skipping Transfers : 2005-11-18
- Power to Control Beneficial Enjoyment : 2005-06-10
- Related or Subordinate Party : 2005-06-10
- Tax On Generation Skipping Transfers : 2003-10-03
- Property Transactions : 2003-10-03
- Grantor Trusts : 2001-11-23
- Grantor Trusts : 1999-09-03
- Release or Modification of Power : 1999-09-03
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