26 U.S.C. § 561

Current through P.L. 118-44 (published on www.congress.gov on 03/18/2024), except for [P. L. 118-42]

Section 561 - Definition of deduction for dividends paid

(a) General rule

The deduction for dividends paid shall be the sum of-

(1) the dividends paid during the taxable year,

(2) the consent dividends for the taxable year (determined under section 565), and

(3) in the case of a personal holding company, the dividend carryover described in section 564.

(b) Special rules applicable

In determining the deduction for dividends paid, the rules provided in section 562 (relating to rules applicable in determining dividends eligible for dividends paid deduction) and section 563 (relating to dividends paid after the close of the taxable year) shall be applicable.

26 U.S.C. § 561

Aug. 16, 1954, ch. 736, 68A Stat. 198; Pub. L. 87-403, §3(f), Feb. 2, 1962, 76 Stat. 8; Pub. L. 94-455, title XIX, §1901(b)(32)(H), Oct. 4, 1976, 90 Stat. 1800.

EDITORIAL NOTES

AMENDMENTS1976-Subsec. (b). Pub. L. 94-455 redesignated existing provisions of par. (1) as subsec. (b) and struck out par. (2) relating to special adjustment on disposition of antitrust stock as a dividend. 1962-Subsec. (b). Pub. L. 87-403 designated existing provisions as par. (1) and added par. (2).

STATUTORY NOTES AND RELATED SUBSIDIARIES

EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455 set out as a note under section 2 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87-403 applicable only with respect to distributions made after Feb. 2, 1962, see section 3(g) of Pub. L. 87-403 set out as a note under section 312 of this title.

stock

The term "stock" includes shares in an association, joint-stock company, or insurance company.

taxable year

The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.