Tax on estates and trusts — Net income.
Effective Feb 12, 2026July 16, 1947, 61 Stat. 347, ch. 258, art. I, title IX, § 5; May 27, 1949, 63 Stat. 132, ch. 146, title IV, § 415; June 11, 1982, D.C. Law 4-118, § 114, 29 DCR 1770; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Feb. 12, 2026, D.C. Law 26-89, § 2(k)
*NOTE: This section includes amendments by temporary legislation that will expire on September 25, 2026. To view the text of this section after the expiration of all emergency and temporary legislation affecting this section, click this link: Permanent Version.*
The net income of the estate or trust shall be computed in the same manner and on the same basis as in the case of an individual, except that:
- (1) 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 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 paragraph (2) of this section in the same or any succeeding taxable year;
- (2) 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 computing the net income of the legatee, heir, or beneficiary;
- (3) There shall be allowed as a deduction, in lieu of a charitable contribution, any part of the gross income, without limitation, which, pursuant to the terms of the will or deed creating a trust, is during the taxable year paid or permanently set aside for the purposes and in the manner provided in the governing instrument creating the trust; and
- (4) [Repealed].
- (5) There shall be allowed to a trust a credit against net income of $100.
History
July 16, 1947, 61 Stat. 347, ch. 258, art. I, title IX, § 5
May 27, 1949, 63 Stat. 132, ch. 146, title IV, § 415
June 11, 1982, D.C. Law 4-118, § 114, 29 DCR 1770
enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575
Feb. 12, 2026, D.C. Law 26-89, § 2(k)
Prior Codifications
1973 Ed., § 47-1577d.
1981 Ed., § 47-1809.5.
Section References
This section is referenced in § 47-1809.06.
Emergency Legislation
For temporary (90 days) amendment of this section, see § 2(k) of D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025 (D.C. Act 26-214, Dec. 3, 2025, 72 DCR 13684).
Temporary Legislation
For temporary (225 days) amendment of this section, see § 2(k) of D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 (D.C. Law 26-89, Feb. 12, 2026, 73 DCR 9).