§ 683 — Use Of Trust As An Exchange Fund

(a) 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) Subsection (a) shall not apply to any transfer to a pooled income fund (within the meaning of section 642(c)(5)).