61 STAT.] 80TH CONG., 1ST SESS.-CH. 258-JULY 16, 1947 347 the trust is a nonresident trust. If the trust resulted from the dis- solution of a corporation organized under the laws of the District of Columbia the trust is a resident trust. If the trust resulted from the dissolution of a foreign corporation, the trust is a nonresident trust. SEC. 2 . RESIDENCE OR SITUS OF FmuCIARY NOT TO CONTROL. -T he res- idence or situs of the fiduciary shall not control the classification of estates and trusts as resident or nonresident under the provisions of 4 section 1 of this title. SEC. 3 . IMPOSITION OF TAx. - The taxes imposed by title VI of this Ante, p. 3a. article upon residents shall apply to the income of resident estates, and income from any kind of property held in resident trusts, including- (a) income accumulated in trust for the benefit of unborn or unascertained person or persons with contingent interests, and income accumulated or held for future distribution under the terms of the will or trust; (b) income which is to be distributed currently by the fiduciary to the beneficiaries, and income collected by a guardian of any infant or incompetent person which is to be held or distributed as the court may direct; (c) income received by estates of deceased persons during the period of administration or settlement of the estate; and (d) income which, in the discretion of the fiduciary, may be either distributed to the beneficiaries or accumulated. SEC. 4 . COMPUTATION OF THE TAx. - The tax shall be computed upon the taxable net income of the estate or trust, and shall be paid by the fiduciary, except as provided in section 7 of this title (relating to re- vocable trusts) and section 8 of this title (relating to income for ben- efit of the grantor). SEC. 5 . NET INCOME.- The net income of the estate or trust shall be Computatio. computed in the same manner and on the same basis as in the case of an individual, except as to the personal exemptions and credits for de- E"optio-s . pendents, and except that- (a) there shall be allowed as an additional deduction in com- puting the net income of the estate or trust the amount of the income of the estate or trust for its taxable year which is to be distributed currently by the fiduciary to the beneficiaries, and the amount of the income collected by a guardian of an infant which is to be held or distributed as the court may direct, but the amount so allowed as a deduction shall be included in computing the net income of the beneficiaries whether distributed to them or not. Any amount allowed as a deduction under this paragraph shall not be allowed as a deduction under subsection (b) of this section in the same or any succeeding taxable year; (b) in the case of income received by estates of deceased persons during the period of administration or settlement of the estate, and in the case of income which, in the discretion of the fiduciary, may be either distributed to the beneficiary or accumulated, there shall be allowed as an additional deduction in computing the net income of the estate or trust the amount of the income of the estate or trust for its taxable year, which is properly paid or credited during such year to any legatee, heir, or beneficiary, but the amount so allowed as a deduction shall be included in com- puting the net income of the legatee, heir, or beneficiary; (c) there shall be allowed as a deduction (in lieu of the deduc- tions for charitable contributions authorized by title III, section 3 (a) (8), of this article) any part of the gross income, without Ate p35 limitation, which pursuant to the terms of the will or deed creat- ing a trust, is during the taxable year paid or permanently set
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