# Treas. Reg. § 1.643(a)-7: Dividends.

Source: eCFR as of 2026-10-19 <https://www.ecfr.gov/current/title-26/section-1.643(a)-7>. Interprets 26 U.S.C. § 643.

Dividends excluded from gross income under section 116 (relating to partial exclusion of dividends received) are included in distributable net income. For this purpose, adjustments similar to those required by § 1.643(a)-5 with respect to expenses allocable to tax-exempt income and to income included in amounts paid or set aside for charitable purposes are not made. See the regulations under section 642(c). 

[T.D. 7357, 40 FR 23742, June 2, 1975]