Code of the District of Columbia

Subchapter IX. Tax on Estates and Trusts.


§ 47–1809.01. Tax on estates and trusts — Residency definitions.

For the purposes of this subchapter, estates and trusts are: (1) Resident estates or trusts, or (2) nonresident estates or trusts. If the decedent was at the time of his death domiciled within the District, his estate is a resident estate, and any trust created by his will is a resident trust. If the decedent was not at the time of his death domiciled within the District, his estate is a nonresident estate, and any trust created by his will is a nonresident trust. If the creator of a trust was at the time the trust was created domiciled within the District, or if the trust consists of property of a person domiciled within the District, the trust is a resident trust. If the creator of the trust was not at the time the trust was created domiciled within the District, the trust is a nonresident trust. If the trust resulted from the dissolution of a corporation organized under the laws of the District of Columbia the trust is a resident trust. If the trust resulted from the dissolution of a foreign corporation, the trust is a nonresident trust.


(July 16, 1947, 61 Stat. 346, ch. 258, art. I, title IX, § 1; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1809.1.

1973 Ed., § 47-1577.

Section References

This section is referenced in § 47-1809.02.


§ 47–1809.02. Tax on estates and trusts — Effect of residence or situs of fiduciary.

The residence or situs of the fiduciary shall not control the classification of estates and trusts as resident or nonresident under the provisions of § 47-1809.01.


(July 16, 1947, 61 Stat. 347, ch. 258, art. I, title IX, § 2; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1809.2.

1973 Ed., § 47-1577a.


§ 47–1809.03. Tax on estates and trusts — Imposition.

The taxes imposed by §§ 47-1806.01 to 47-1806.06 upon residents shall apply to the income of resident estates, and income from any kind of property held in resident trusts, including:

(1) Income accumulated in trust for the benefit of unborn or unascertained person or persons with contingent interests, and income accumulated or held for future distribution under the terms of the will or trust;

(2) Income which is to be distributed currently by the fiduciary to the beneficiaries, and income collected by a guardian of any infant or incompetent person which is to be held or distributed as the court may direct;

(3) Income received by estates of deceased persons during the period of administration or settlement of the estate; and

(4) Income which, in the discretion of the fiduciary, may be either distributed to the beneficiaries or accumulated.


(July 16, 1947, 61 Stat. 347, ch. 258, art. I, title IX, § 3; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1809.3.

1973 Ed., § 47-1577b.

Cross References

Tax rate changes, authority of the Council of the District of Columbia, see § 47-504.


§ 47–1809.04. Tax on estates and trusts — Computation.

The tax shall be computed upon the taxable net income of the estate or trust, and shall be paid by the fiduciary, except as provided in § 47-1809.07 (relating to revocable trusts) and § 47-1809.08 (relating to income for benefit of the grantor).


(July 16, 1947, 61 Stat. 347, ch. 258, art. I, title IX, § 4; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1809.4.

1973 Ed., § 47-1577c.


§ 47–1809.05. Tax on estates and trusts — Net income.

The net income of the estate or trust shall be computed in the same manner and on the same basis as in the case of an individual, except as to the personal exemptions and credits for dependents, and except that:

(1) There shall be allowed as an additional deduction in computing the net income of the estate or trust the amount of the income of the estate or trust for its taxable year which is to be distributed currently by the fiduciary to the beneficiaries, and the amount of the income collected by a guardian of an infant which is to be held or distributed as the court may direct, but the amount so allowed as a deduction shall be included in computing the net income of the beneficiaries whether distributed to them or not. Any amount allowed as a deduction under this paragraph shall not be allowed as a deduction under paragraph (2) of this section in the same or any succeeding taxable year;

(2) In the case of income received by estates of deceased persons during the period of administration or settlement of the estate, and in the case of income which, in the discretion of the fiduciary, may be either distributed to the beneficiary or accumulated, there shall be allowed as an additional deduction in computing the net income of the estate or trust the amount of the income of the estate or trust for its taxable year, which is properly paid or credited during such year to any legatee, heir, or beneficiary, but the amount so allowed as a deduction shall be included in computing the net income of the legatee, heir, or beneficiary;

(3) There shall be allowed as a deduction, in lieu of a charitable contribution, any part of the gross income, without limitation, which, pursuant to the terms of the will or deed creating a trust, is during the taxable year paid or permanently set aside for the purposes and in the manner provided in the governing instrument creating the trust;

(4) There shall be allowed to an estate the same exemption as is allowed residents under the provisions of § 47-1806.02(a); and

(5) There shall be allowed to a trust a credit against net income of $100.


(July 16, 1947, 61 Stat. 347, ch. 258, art. I, title IX, § 5; May 27, 1949, 63 Stat. 132, ch. 146, title IV, § 415; June 11, 1982, D.C. Law 4-118, § 114, 29 DCR 1770; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1809.5.

1973 Ed., § 47-1577d.

Section References

This section is referenced in § 47-1809.06.


§ 47–1809.06. Tax on estates and trusts — Beneficiary taxable year.

If the taxable year of a beneficiary is different from that of the estate or trust, the amount which he is required, under § 47-1809.05(1), to include in computing his net income, shall be based upon the income of the estate or trust for any taxable year of the estate or trust ending within his taxable year.


(July 16, 1947, 61 Stat. 348, ch. 258, art. I, title IX, § 6; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1809.6.

1973 Ed., § 47-1577e.


§ 47–1809.07. Tax on estates and trusts — Revocable trusts.

The income of a trust shall be included in computing the net income of the grantor of such trust where at any time the power to revest in the grantor title to any part of the corpus of the trust is vested:

(1) In the grantor, either alone or in conjunction with any person not having a substantial adverse interest in the disposition of such part of the corpus or the income therefrom; or

(2) In any person not having a substantial adverse interest in the disposition of such part of the corpus or the income therefrom.


(July 16, 1947, 61 Stat. 348, ch. 258, art. I, title IX, § 7; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1809.7.

1973 Ed., § 47-1577f.

Section References

This section is referenced in § 47-1809.04.


§ 47–1809.08. Tax on estates and trusts — Income for benefit of grantor.

So much of the income of any trust shall be included in computing the net income of the grantor as:

(1) Is, or in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income may be, held or accumulated for future distribution to the grantor;

(2) May, in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income, be distributed to the grantor; or

(3) Is, or in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income may be, applied to the payment of premiums upon policies of insurance on the life of the grantor (except policies of insurance irrevocably payable for the purposes and in the manner specified in § 47-1803.03(a)(8), relating to the so-called “charitable contribution” deduction).


(July 16, 1947, 61 Stat. 348, ch. 258, art. I, title IX, § 8; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1809.8.

1973 Ed., § 47-1577g.

Section References

This section is referenced in § 47-1809.04.


§ 47–1809.09. Tax on estates and trusts — “In discretion of grantor” defined.

As used in this subchapter, the term “in the discretion of the grantor” means in the discretion of the grantor either alone or in conjunction with any person not having a substantial adverse interest in the disposition of the part of the income in question.


(July 16, 1947, 61 Stat. 348, ch. 258, art. I, title IX, § 9; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1809.9.

1973 Ed., § 47-1577h.


§ 47–1809.10. Tax on estates and trusts — Employees’ trusts.

(a) Exempt status. — A trust forming part of a stock bonus, pension, or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries shall not be taxable under this chapter and, except as expressly provided in this section, no other provision of this chapter shall apply with respect to such trust or to its beneficiary if such trust meets the requirements for exemption from federal income tax under sections 401, 402, and 501(a) of the Internal Revenue Code of 1986; provided, that to the extent that the trusts have unrelated business income subject to tax under section 511 of the Internal Revenue Code of 1986, the unrelated business income shall be taxed in the same manner and to the same extent as the tax imposed by subchapter VII of this chapter, except as hereinafter in this section expressly provided.

(b) Distributions. — The amount actually distributed or made available to any distributee by any such trust shall be taxable to him, in the year in which so distributed or made available, under § 47-1803.02(b)(2) as if it were an annuity the consideration for which is the amount contributed by the employee.

(c) Nonexempt contributions. — Contribution to a trust made by an employer during a taxable year of the employer which ends within or with a taxable year of the trust for which the trust is not exempt under subsection (a) of this section shall be included in the gross income of an employee for the taxable year in which the contribution is made to the trust in the case of an employee whose beneficial interest in such contribution is nonforfeitable at the time the contribution is made.


(July 16, 1947, 61 Stat. 348, ch. 258, art. I, title IX, § 10; June 24, 1987, D.C. Law 7-9, § 2(j), 34 DCR 3283; Oct. 1, 1987, D.C. Law 7-29, § 2(i), 34 DCR 5097; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 9, 2001, D.C. Law 13-305, § 202(d), 48 DCR 334.)

Prior Codifications

1981 Ed., § 47-1809.10.

1973 Ed., § 47-1577i.

Effect of Amendments

D.C. Law 13-305 rewrote subsec. (a) which had read:

“(a) Exempt status.—A trust forming part of a stock bonus, pension, or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries shall not be taxable under this chapter and no other provision of this chapter shall apply with respect to such trust or to its beneficiary, except as hereinafter in this section expressly provided, if such trust meets the requirements for exemption from federal income tax under §§ 401, 402, and 501(a) of the Internal Revenue Code of 1986 (§§ 401, 402, and 501(a) of Title 26, United States Code).”

Editor's Notes

Section 203(a) of D.C. Law 13-305 provided: “(a) Section 202(a) through (e) shall apply for all tax years beginning after December 31, 2000.”