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HOMETAX NOTES RESEARCHFEDERALINTERNAL REVENUE CODE OF 1986

Sec. 683 Use of trust as an exchange fund

  • Internal Revenue Code of 1986
  • SUBTITLE A -- INCOME TAXES
  • Chapter 1 -- Normal Taxes and Surtaxes
  • Subchapter J -- Estates, Trusts, Beneficiaries, and Decedents
  • Part I -- Estates, trusts, and beneficiaries
  • Subpart F -- Miscellaneous

(a) General rule. Except as provided in subsection (b), if property is transferred to a trust in exchange for an interest in other trust property and if the trust would be an investment company (within the meaning of section 351) if it were a corporation, then gain shall be recognized to the transferor.

(b) Exception for pooled income funds. Subsection (a) shall not apply to any transfer to a pooled income fund (within the meaning of section 642(c)(5)).

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