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.
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)).
Aug. 16, 1954, ch. 73668A Stat. 235Pub. L. 94–455, title XXI, § 2131(e)(1)90 Stat. 1924(, ; , , .)
Editorial Notes
Amendments
Pub. L. 94–4551976— 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
Pub. L. 94–455section 2131(f)(6) of Pub. L. 94–455section 584 of this titleAmendment of section by effective on , in taxable years ending on or after such date, see , set out as a note under .