§ 684. Recognition of gain on certain transfers to certain foreign trusts and estates

510 words·~2 min read·/usc/title-26/section-684

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(a)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—

(1)the fair market value of the property so transferred, over

(2)the adjusted basis (for purposes of determining gain) of such property in the hands of the transferor.

(b)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.

(c)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.)

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U.S. Code

statutes-at-large

Public Law 107–16
To provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002

Traces to 1 document

U.S. Code

Exclusion of gain from sale of principal residence
§ 121

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Pub. L. 105–34, title XI, § 1131(b)
111 Stat. 978
Pub. L. 107–16, title V, § 542(e)(1)(A)
115 Stat. 84
Pub. L. 111–312, title III, § 301(a)
124 Stat. 3300
section 1131(b) of Pub. L. 105–34
Pub. L. 111–312
Pub. L. 107–16, § 542(e)(1)(A)
section 301(e) of Pub. L. 111–312
Pub. L. 107–16
section 542(f)(2) of Pub. L. 107–16

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§ 684

Recognition of gain on certain transfers to certain foreign trusts and estates

U.S.C.×5

Stat.×1

U.S.C.§ 121

Pub. L.Pub. L. 105–34, title XI, § 1131(b)

Stat.111 Stat. 978

Pub. L.Pub. L. 107–16, title V, § 542(e)(1)(A)

Stat.115 Stat. 84

Pub. L.Pub. L. 111–312, title III, § 301(a)

Cites 13 · showing 6Cited by 6 across 2 sources