26 U.S.C. § 683. Use of trust as an exchange fund

1. (a)
   (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.
2. (b)
   (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)).