26Title 26The US tax code, read & explained

26 U.S.C. § 561

§ 561. Definition of deduction for dividends paid

104 words · amended 2 times · cited by 12 other sections

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No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Part of the code since 1954. Last changed October 4, 1976 by the Tax Reform Act of 1976.

Every change, newest first (3)
  1. October 4, 1976Tax Reform Act of 1976
  2. February 2, 1962Public Law 87-403
  3. August 16, 1954Internal Revenue Code of 1954 (original text)

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) General rule
  2. (b) Special rules applicable
(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.