26 USC § 683 - Use of trust as an exchange fund

---
identifier: "/us/usc/t26/s683"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 683 - Use of trust as an exchange fund"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "683"
section_name: "Use of trust as an exchange fund"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "J"
subchapter_name: "Estates, Trusts, Beneficiaries, and Decedents"
part_number: "I"
part_name: "ESTATES, TRUSTS, AND BENEFICIARIES"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Aug. 16, 1954, ch. 736, 68A Stat. 235; Pub. L. 94–455, title XXI, § 2131(e)(1), Oct. 4, 1976, 90 Stat. 1924.)"
---


# § 683. Use of trust as an exchange fund

**(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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**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 235; Pub. L. 94–455, title XXI, § 2131(e)(1), Oct. 4, 1976, 90 Stat. 1924.)

## Editorial Notes

### Amendments

1976— 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 , and ending after the date of the enactment of this title and exceptions thereto.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1976 Amendment

Amendment of section by  effective on , in taxable years ending on or after such date, see , set out as a note under .