Title 26 — Internal Revenue CodeRelease 119-73
§683 Use of Trust as an Exchange Fund
Title 26 › Subtitle 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 › § 683
Summary
If you put property into a trust in exchange for an interest in other trust property, and the trust would count as an investment company if it were a corporation, you must report any gain on the swap. This rule does not apply to transfers to a pooled income fund.
Full Legal Text
Title 26, §683
Internal Revenue Code — Source: USLM XML via OLRC
(a)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)Subsection (a) shall not apply to any transfer to a pooled income fund (within the meaning of section 642(c)(5)).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1976—Pub. L. 94–455 substituted provisions relating to use of trust as an exchange fund for provisions setting forth rule that this part applies only to taxable years beginning after Dec. 31, 1953, and ending after the date of the enactment of this title and exceptions thereto.
Statutory Notes and Related Subsidiaries
Effective Date
of 1976 AmendmentAmendment of section by Pub. L. 94–455 effective on Apr. 8, 1976, in taxable years ending on or after such date, see section 2131(f)(6) of Pub. L. 94–455, set out as a note under section 584 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 683
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73