Reg. § 1.561-1 Deduction for dividends paid.
(a) The deduction for dividends paid is applicable in determining accumulated taxable income under section , undistributed personal holding company income under section , undistributed foreign personal holding company income under section 556, investment company taxable income under section , and real estate investment trust taxable income under section . The deduction for dividends paid includes:
(1) The dividends paid during the taxable year;
(2) The consent dividends for the taxable year, determined as provided in section ; and
(3) In the case of a personal holding company, the dividend carryover computed as provided in section .
(b) For dividends for which the dividends paid deduction is allowable, see section and . As to when dividends are considered paid, see .
[T.D. 6500, 25 FR 11737, Nov. 26, 1960, as amended by T.D. 6598, 27 FR 4093, Apr. 28, 1962]