Taxable Years Beginning in 1945 Sec. 162. (d) (3) Distributions in first 65 days of taxable year. Same as 1944. Sec. 162. (d) (4) Excess deductions. Same as 1944. Taxable Years Beginning in 1944 comes payable the amount of such income shall be considered income of the estate or trust for its taxable year which is paid, credited, or to be distributed to the extent of the income of the estate or trust for such period, or if such period is a period of more than 12 months, the last 12 months thereof. Sec. 162. (d) (3) Distributions in first 65 days of taxable year. (A) General Rule.-If within the first 65 days of any taxable year of the estate or trust income of the estate or trust, for a period beginning before the beginning of the taxable year, becomes payable, such income, to the extent of the income of the estate or trust for the part of such period not falling within the taxable year or, if such part is longer than 12 months, the last 12 months thereof, shall be considered, paid, credited, or to be distributed on the last day of the preceding taxable year. This subparagraph shall not apply with respect to any amount with respect to which subparagraph (B) applies. (B) Payable Out of Income or Corpus.-If within the first 65 days of any taxable year of the estate or trust, an amount which can be paid at intervals out of other than income becomes payable, there shall be considered as paid, credited, or to be distributed on the last day of the preceding taxable year the part of such amount which bears the same ratio to such amount as the part of the interval not falling within the taxable year bears to the period of the interval. If the part of the interval not falling within the taxable year is a period of more than 12 months, the interval shall be considered to begin on the date 12 months before the end of the taxable year. Sec. 162. (d) (4) Excess deductions.-If for any taxable year of an estate or trust the deductions allowed under subsection (b) or (c) solely by reason of paragraph (2) or (3) (A) in respect of any income which becomes payable to a legatee, heir, or beneficiary exceed the net income of the estate Taxable Years Beginning before 1944 Sec. 162. (d) (3) Distributions in first 65 days of taxable year. Section originated 1942 as Sec. 162 (d) (3), I. R. C. For any amendments prior to 1944, see Ninth Edition, p. 430. Taxable Years Beginning in 1949 such year, computed without such deductions, the amount of such excess shall not be included in computing the net income of such legatee, heir, or beneficiary under subsection (b) or (c). In cases where the income deductible solely by reason of paragraph (2) or (3) (A) becomes payable to two or more legatees, heirs, or beneficiaries, the benefit of such exclusion shall be divided among such legatees, heirs, and beneficiaries in the proportions in which they share in such income. In any case where the estate or trust is entitled to a deduction by reason of paragraph (1) in the determination of the net income of the estate or trust for the purposes of this paragraph the amount of such deduction shall be determined with the application of paragraph (3) (A). Sec. 162. (e) Amounts allowable under section 812 (b) as a deduction in computing the net estate of a decedent shall not be allowed as a deduction under section 23, except subsection (w) in computing the net income of the estate unless there is filed, within the time and in the manner and form prescribed by the Commissioner, a statement that the items have not been claimed or allowed as deductions under section 812 (b) and a waiver Sec. 162. (e). Same as 1944. Sec. 162. (e). Same as 1944. Taxable Years Beginning in 1945 Sec. 162. (e). Same as 1944. Taxable Years Beginning in 1944 or trust for such year, computed without such deductions, the amount of such excess shall not be included in computing the net income of such legatee, heir, or beneficiary under subsection (b) or (c). In cases where the income deductible solely by reason of paragraph (2) or (3) (A) becomes payable to two or more legatees, heirs, or beneficiaries, the benefit of such exclusion shall be divided among such legatees, heirs, and beneficiaries, in the proportions in which they share in such income. In any case where the estate or trust is entitled to a deduction by reason of paragraph (1) in the determination of the net income of the estate or trust for the purposes of this paragraph the amount of such deduction shall be determined with the application of paragraph (3) (A). Sec. 162 (d) (4), I. R. C., supra, added to I. R. C. by Sec. 133 (a), R. A. of 1943. Retroactivity Sec. 133 (b) provides that said amendment shall be effective as if it were a part of section 111 of R. A. of 1942. Sec. 111 (e), R. A. of 1942, reads as follows: "Sec. 111. (e) TAXABLE YEARS ΤΟ WHICH AMENDMENTS APPLICABLE.-The amendments made by this section (111) shall be applicable only with respect to taxable years beginning after December 31, 1941; except that in the case of income paid, credited or to be distributed or amounts paid, credited or to be distributed by an estate or trust the amendments made by this section shall be applicable only with respect to such income and such amounts paid, credited or to be distributed on or after the beginning of the first taxable year of the estate or trust, as the case may be, beginning after December 31, 1941." Sec. 162. (e) Amounts allowable under section 812 (b) as a deduction in computing the net estate of a decedent shall not be allowed as a deduction under section 23, except subsection (w), in computing the net income of the estate unless there is filed, within the time and in the manner and form prescribed by the Commissioner, a statement that the items have not been claimed or allowed as deductions under section 812 (b) and a waiver Taxable Years Beginning before 1944 Sec. 162. (e). Section originated 1942 as Sec. 162 (e), I. R. C., and was made retroactive to 1913 in so far as it applies to Sec. 23 (a) (2). For any amendments prior to 1944, see Ninth Edition, p. 432. Sec. 163. (a) (1) For the purpose of the normal tax and the surtax, an estate shall be allowed, in lieu of the exemptions under section 25 (b) (1), a credit of $600 against net income, and a trust shall be allowed, in lieu of the exemptions under section 25 (b) (1), a credit of $100 against net income. Sec. 163. (a) (1) For the purpose of the normal tax and the surtax, an estate shall be allowed, in lieu of the exemptions under section 25 (b) (1), a credit of $500 $600 against net income, and a trust shall be allowed, in lieu of the exemptions under section 25 (b) (1), a credit of $100 against net income. Sec. 163 (a) (1), I. R. C.. supra, as shown in 1946-47 column, amended by Sec. 202 (d), R. A. of 1948, by striking out "$500" and inserting in lieu thereof Sec. 203 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1947. Sec. 163. (a) (1) For the purpose of the normal tax and the surtax, an estate shall be allowed, in lieu of the exemptions under section 25 (b) (1), a credit of $500 against net income, and a trust shall be allowed, in lieu of the exemptions under section 25 (b) (1), a credit of $100 against net income. Sec. 163 (a) (1), I. R. C., supra, as shown in 1944 column, amended by Sec. 102 (b) (6), R. A. of 1945, to read as above. Sec. 102 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1945. Taxable Years Beginning in 1945 Sec. 162. (f). Same as 1944. Sec. 163. Credits against net income. Sec. 163. (a) Credits of estate or trust. Same as 1944. Sec. 163. (b) Credits of beneficiary. Same as 1944. Taxable Years Beginning in 1944 of the right to have such items allowed at any time as deductions under section 812 (b). Sec. 162. (1) The standard deduction provided in section 23 (aa) shall not be allowed. Sec. 162 (f), I. R. C., supra, added to I. R. C. by Sec. 9 (b) (1), I. I. T. A. of 1944. Sec. 2 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1943. Sec. 163. Credits against net income. Sec. 163. (a) Credits of estate or trust. Sec. 163. (a) (1) For the purpose of the normal tax an estate shall be allowed the same normal tax exemption as is allowed to a single person under section 25 (a) (3). For the purpose of the surtax an estate shall be allowed the same surtax exemption as is allowed to an individual under section 25 (b) (1) (A). A trust shall be allowed a credit of $100 against net income for the purpose of the normal tax and a credit of $100 against net income for the purpose of the surtax. Such credits shall be in lieu of the normal tax exemption under section 25 (a) (3) and the surtax exemption under section 25 (b) (1) (A). Sec. 163 (a) (1), I. R. C., supra, amended by Sec. 10 (e), I. I. T. A. of 1944, to read as above. Sec. 2 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1943. For section before amendment, see Ninth Edition, p. 432. Sec. 163. (a) (2) If no part of the income of the estate or trust is included in computing the net income of any legatee, heir, or beneficiary, then the estate or trust shall be allowed the same credits against net income for interest as are allowed by section 25 (a). Sec. 163. (b) Credits of beneficiary. If any part of the income of an estate or trust is included in computing the net income of any |