---
kind: "section"
citation: "26 U.S.C. § 683"
title: "26"
title_heading: "Internal Revenue Code"
number: "683"
heading: "Use of trust as an exchange fund"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/683"
units:
  - "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. Use of trust as an exchange fund

- (a) **General rule—** Except as provided in [subsection (b)](#b), if [property](/usc/26/317.md?p=a) is transferred to a trust in exchange for an [interest](/usc/26/856.md?p=f-1) in other trust [property](/usc/26/317.md?p=a) and if the trust would be an [investment company](/usc/26/368.md?p=a-2-F-iii) (within the meaning of [section 351](/usc/26/351.md)) if it were a corporation, then gain shall be recognized to the transferor.
- (b) **Exception for pooled income funds—** [Subsection (a)](#a) shall not apply to any transfer to a pooled income [fund](/usc/26/851.md?p=g-2) (within the meaning of [section 642(c)(5)](/usc/26/642.md?p=c-5)).

## 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.)

## Notes

### 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 Amendment

Amendment 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.