---
kind: "section"
citation: "26 U.S.C. § 652"
title: "26"
title_heading: "Internal Revenue Code"
number: "652"
heading: "Inclusion of amounts in gross income of beneficiaries of trusts distributing current income only"
release: "119-102"
url: "https://uscodex.org/usc/26/652"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter J — Estates, Trusts, Beneficiaries, and Decedents"
  - "Part I — Estates, Trusts, and Beneficiaries"
  - "Subpart B — Trusts Which Distribute Current Income Only"
---

# §652. Inclusion of amounts in gross income of beneficiaries of trusts distributing current income only

- (a) **Inclusion—** Subject to [subsection (b)](#b), the amount of income for the [taxable year](/usc/26/441.md?p=b) required to be distributed currently by a trust described in [section 651](/usc/26/651.md) shall be included in the gross income of the [beneficiaries](/usc/26/643.md?p=c) to whom the income is required to be distributed, whether distributed or not. If such amount exceeds the [distributable net income](/usc/26/643.md?p=a), there shall be included in the gross income of each [beneficiary](/usc/26/643.md?p=c) an amount which bears the same ratio to [distributable net income](/usc/26/643.md?p=a) as the amount of income required to be distributed to such [beneficiary](/usc/26/643.md?p=c) bears to the amount of income required to be distributed to all [beneficiaries](/usc/26/643.md?p=c).
- (b) **Character of amounts—** The amounts specified in [subsection (a)](#a) shall have the same character in the hands of the [beneficiary](/usc/26/643.md?p=c) as in the hands of the trust. For this purpose, the amounts shall be treated as consisting of the same proportion of each class of items entering into the computation of [distributable net income](/usc/26/643.md?p=a) of the trust as the total of each class bears to the total [distributable net income](/usc/26/643.md?p=a) of the trust, unless the terms of the trust specifically allocate different classes of income to different [beneficiaries](/usc/26/643.md?p=c). In the application of the preceding sentence, the items of deduction entering into the computation of [distributable net income](/usc/26/643.md?p=a) shall be allocated among the items of [distributable net income](/usc/26/643.md?p=a) in accordance with regulations prescribed by the [Secretary](/usc/26/7701.md?p=a-11-B).
- (c) **Different taxable years—** If the [taxable year](/usc/26/441.md?p=b) of a [beneficiary](/usc/26/643.md?p=c) is different from that of the trust, the amount which the [beneficiary](/usc/26/643.md?p=c) is required to include in gross income in accordance with the provisions of this section shall be based upon the amount of income of the trust for any [taxable year](/usc/26/441.md?p=b) or years of the trust ending within or with his [taxable year](/usc/26/441.md?p=b).

## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 219; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

## Notes

### Editorial Notes

### Amendments

1976—Subsec. (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.