# 26 U.S.C. § 854: Limitations applicable to dividends received from regulated investment company

> Federal · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/usc_t26_s854

## Section

- **Citation:** 26 U.S.C. § 854
- **Heading:** Limitations applicable to dividends received from regulated investment company
- **Jurisdiction:** Federal
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** September 16, 2026
- **Source:** Publisher's official text
- **Location:** Title 26—INTERNAL REVENUE CODE > Subtitle A—Income Taxes > CHAPTER 1—NORMAL TAXES AND SURTAXES > Subchapter M—Regulated Investment Companies and Real Estate Investment Trusts > PART I—REGULATED INVESTMENT COMPANIES

## Text

For purposes of section 1(h)(11) (relating to maximum rate of tax on dividends) and section 243 (relating to deductions for dividends received by corporations), a capital gain dividend (as defined in section 852(b)(3)) received from a regulated investment company shall not be considered as a dividend.

( Aug. 16, 1954, ch. 736 , 68A Stat. 273 ; Pub. L. 88–272, title II , §§ 201(d)(8)–(10), 229(a)(4), Feb. 26, 1964 , 78 Stat. 32 , 99; Pub. L. 96–223, title IV, § 404(b)(6) , Apr. 2, 1980 , 94 Stat. 307 ; Pub. L. 97–34, title III, § 302(c)(4) , (d)(1), Aug. 13, 1981 , 95 Stat. 272 , 274; Pub. L. 98–369, div. A, title I , §§ 16(a), 52(a)–(c), July 18, 1984 , 98 Stat. 505 , 564, 565; Pub. L. 99–514, title VI , §§ 612(b)(6), 655(a)(4), Oct. 22, 1986 , 100 Stat. 2250 , 2299; Pub. L. 100–203, title X, § 10221(d)(3) , Dec. 22, 1987 , 101 Stat. 1330–409 ; Pub. L. 100–647, title I, § 1006(b)(2) , Nov. 10, 1988 , 102 Stat. 3393 ; Pub. L. 108–27, title III, § 302(c) , May 28, 2003 , 117 Stat. 762 ; Pub. L. 108–311, title IV, § 402(a)(5)(A) –(D), Oct. 4, 2004 , 118 Stat. 1184 ; Pub. L. 111–325, title III, § 301(e) , Dec. 22, 2010 , 124 Stat. 3544 .)

## Nearby sections

- [26 U.S.C. § 851 Definition of regulated investment company](https://www.frixlaw.com/law-library/statutes/usc_t26_s851.md)
- [26 U.S.C. § 852 Taxation of regulated investment companies and their shareholders](https://www.frixlaw.com/law-library/statutes/usc_t26_s852.md)
- [26 U.S.C. § 853 Foreign tax credit allowed to shareholders](https://www.frixlaw.com/law-library/statutes/usc_t26_s853.md)
- [26 U.S.C. § 853A Credits from tax credit bonds allowed to shareholders](https://www.frixlaw.com/law-library/statutes/usc_t26_s853A.md)
- [26 U.S.C. § 854 Limitations applicable to dividends received from regulated investment company](https://www.frixlaw.com/law-library/statutes/usc_t26_s854.md)
- [26 U.S.C. § 855 Dividends paid by regulated investment company after close of taxable year](https://www.frixlaw.com/law-library/statutes/usc_t26_s855.md)
- [26 U.S.C. § 856 Definition of real estate investment trust](https://www.frixlaw.com/law-library/statutes/usc_t26_s856.md)
- [26 U.S.C. § 857 Taxation of real estate investment trusts and their beneficiaries](https://www.frixlaw.com/law-library/statutes/usc_t26_s857.md)
- [26 U.S.C. § 858 Dividends paid by real estate investment trust after close of taxable year](https://www.frixlaw.com/law-library/statutes/usc_t26_s858.md)
- [26 U.S.C. § 859 Adoption of annual accounting period](https://www.frixlaw.com/law-library/statutes/usc_t26_s859.md)
- [26 U.S.C. § 860 Deduction for deficiency dividends](https://www.frixlaw.com/law-library/statutes/usc_t26_s860.md)
- [26 U.S.C. § 860A Taxation of REMIC’s](https://www.frixlaw.com/law-library/statutes/usc_t26_s860A.md)
- [26 U.S.C. § 860B Taxation of holders of regular interests](https://www.frixlaw.com/law-library/statutes/usc_t26_s860B.md)
- [26 U.S.C. § 860C Taxation of residual interests](https://www.frixlaw.com/law-library/statutes/usc_t26_s860C.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/usc_t26_s854. Check the current official text before relying on it. Not legal advice.