§ 681 Limitation on charitable deduction
(a) Trade or business income
In computing the deduction allowable under section to a trust, no amount otherwise allowable under section as a deduction shall be allowed as a deduction with respect to income of the taxable year which is allocable to its unrelated business income for such year. For purposes of the preceding sentence, the term “unrelated business income” means an amount equal to the amount which, if such trust were exempt from tax under section by reason of section , would be computed as its unrelated business taxable income under section (relating to income derived from certain business activities and from certain property acquired with borrowed funds).
(b) Cross reference
For disallowance of certain charitable, etc., deductions otherwise allowable under section , see sections and .
(Aug. 16, 1954, ch. 736, 68A Stat. 232; Pub. L. 90–630, § 6(b), Oct. 22, 1968, 82 Stat. 1330; Pub. L. 91–172, title I, §§ 101(j)(18), (19), 121(d)(2)(B), Dec. 30, 1969, 83 Stat. 528, 547.)
Operative text only. Editorial notes, amendment history, and effective dates: official OLRC text of § 681