26 USC 684 - Recognition of gain on certain transfers to certain foreign trusts and estates

U.S Code last checked for updates: Jan 18, 2025

§ 684.

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

(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

(c)

Treatment of trusts which become foreign trusts

(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.)

cite as: 26 USC 684