# 26 U.S.C. § 683: Use of trust as an exchange fund

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s683>. Cite pinpoints as 26 U.S.C. § 683(a)(1).

## § 683(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.

## § 683(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)).

## Regulations

- [Treas. Reg. § 1.683-1](/26/reg/1.683-1.md): Applicability of provisions; general rule. (interprets § 683)
- [Treas. Reg. § 1.683-2](/26/reg/1.683-2.md): Exceptions. (interprets § 683)
- [Treas. Reg. § 1.683-3](/26/reg/1.683-3.md): Application of the 65-day rule of the Internal Revenue Code of 1939. (interprets § 683)

## Connections

Cites: § 351 Transfer to corporation controlled by transferor; § 642 Special rules for credits and deductions

Cited by: none

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 235
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1924