Source: http://www.law.cornell.edu/uscode/text/26/684?qt-us_code_tabs=1
Timestamp: 2014-12-18 06:46:49
Document Index: 389743683

Matched Legal Cases: ['§ 684', '§ 684', '§ 684', '§ 1131', '§ 542', '§ 301', '§ 542', '§ 542']

26 U.S. Code § 684 - Recognition of gain on certain transfers to certain foreign trusts and estates | LII / Legal Information Institute
U.S. Code › Title 26 › Subtitle A › Chapter 1 › Subchapter J › Part I › Subpart F › § 684 26 U.S. Code § 684 - Recognition of gain on certain transfers to certain foreign trusts and estates
In general Except as provided in regulations, in the case of any transfer of property by a United States person to a foreign estate or trust, for purposes of this subtitle, such transfer shall be treated as a sale or exchange for an amount equal to the fair market value of the property transferred, and the transferor shall recognize as gain the excess of—
the fair market value of the property so transferred, over
the adjusted basis (for purposes of determining gain) of such property in the hands of the transferor.
Exception Subsection (a) shall not apply to a transfer to a trust by a United States person to the extent that any person is treated as the owner of such trust under section 671.
Treatment of trusts which become foreign trusts If a trust which is not a foreign trust becomes a foreign trust, such trust shall be treated for purposes of this section as having transferred, immediately before becoming a foreign trust, all of its assets to a foreign trust.
(Added Pub. L. 105–34, title XI, § 1131(b),Aug. 5, 1997, 111 Stat. 978; amended Pub. L. 107–16, title V, § 542(e)(1)(A)–(C), June 7, 2001, 115 Stat. 84, 85; Pub. L. 111–312, title III, § 301(a),Dec. 17, 2010, 124 Stat. 3300.)
Another section 1131(b) ofPub. L. 105–34amended sections 367, 721, and 1035 of this title.
2010—Pub. L. 111–312amended catchline, introductory provisions of subsec. (a), andsubsec. (b) to read as if amendment by Pub. L. 107–16, § 542(e)(1)(A)–(C), had never been enacted. See 2001 Amendment note below. Prior to amendment, subsec. (b) read as follows: “Exceptions.—
“(1) Transfers to certain trusts.—Subsection (a) shall not apply to a transfer to a trust by a United States person to the extent that any United States person is treated as the owner of such trust under section 671.
“(2) Lifetime transfers to nonresident aliens.—Subsection (a) shall not apply to a lifetime transfer to a nonresident alien.”
2001—Pub. L. 107–16, § 542(e)(1)(A)–(C), amended section by inserting “and nonresident aliens” after “estates” in section catchline and “or to a nonresident alien” after “or trust” in introductory provisions of subsec. (a) and amending subsec. (b) generally. Prior to amendment, text of subsec. (b) read as follows: “Subsection (a) shall not apply to a transfer to a trust by a United States person to the extent that any person is treated as the owner of such trust under section 671.”
Amendment by Pub. L. 107–16applicable to transfers after Dec. 31, 2009, see section 542(f)(2) ofPub. L. 107–16, set out as a note under section 121 of this title.