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

Verified against govinfo.gov as of June 20, 2026View official text on govinfo.gov
  1. (a)General ruleExcept 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.
  2. (b)Exception for pooled income fundsSubsection (a) shall not apply to any transfer to a pooled income fund (within the meaning of section 642(c)(5)).