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

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1997

   Pub. L. 105–34 title XI § 1131(b) · 111 Stat. 788

   Enacted · 26 U.S.C. § 684

   Added Pub. L. 105–34, title XI, § 1131(b), Aug. 5, 1997, 111 Stat. 978

   Source evidence

   Code source credit
   Added Pub. L. 105–34, title XI, § 1131(b), Aug. 5, 1997, 111 Stat. 978

   Enacted provision · exact public law section
   (b) Recognition of Gain on Certain Transfers to Foreign Trusts and Estates.— Subpart F of part I of subchapter J of chapter 1 is amended by adding at the end the following new section: “SEC. 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.—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.”.

2. 2001

   Pub. L. 107–16 § 542(e)(1)(A) · 115 Stat. 38

   1. Inserted · 26 U.S.C. § 684

      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)

   2. Changed · 26 U.S.C. § 684

      Pub. L. 107–16, § 542(e)(1)(A)–(C), 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.”

   Source evidence

   Code amendment note
   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.”

   Enacted provision · exact public law section
   (A) Subsection (a) of section 684 is amended by 26 USC 684. inserting “or to a nonresident alien” after “or trust”.

3. 2010

   Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

   Pub. L. 111–312 title III § 301(a) · 124 Stat. 3296

   Amended · 26 U.S.C. § 684

   Pub. L. 111–312 amended catchline, introductory provisions of subsec. (a), and subsec. (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.—

   Source evidence

   Code amendment note
   Pub. L. 111–312 amended catchline, introductory provisions of subsec. (a), and subsec. (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.”

   Enacted provision · exact public law section
   (a) In General.— Each provision of law amended by subtitle A or E of title V of the Economic Growth and Tax Relief Reconciliation Act of 2001 26 USC 121, 684, 1014, 1022, 1040, 1221, 1246, 1291, 1296, 2210, 2664, 6018, 6019, 6075, 6716, 7701. is amended to read as such provision would read if such subtitle had never been enacted.

   Effective date note
   Amendment by Pub. L. 111–312 applicable to estates of decedents dying, and transfers made after Dec. 31, 2009, except as otherwise provided, see section 301(e) of Pub. L. 111–312, set out as an Effective and Termination Dates of 2010 Amendment note under section 121 of this title.

4 of 4 references resolved to an enrolled provision