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

1 cases·1 cited

(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.

  • Treas. Reg. §Treas. Reg. §1.684-1 Recognition of gain on transfers to certain foreign trusts and estates
  • Treas. Reg. §Treas. Reg. §1.684-1(a) Immediate recognition of gain—(1) In general.
  • Treas. Reg. §Treas. Reg. §1.684-1(b) Definitions.
  • Treas. Reg. §Treas. Reg. §1.684-1(c) Reporting requirements.
  • Treas. Reg. §Treas. Reg. §1.684-1(d) Examples.
  • Treas. Reg. §Treas. Reg. §1.684-2 Transfers
  • Treas. Reg. §Treas. Reg. §1.684-2(a) In general.
  • Treas. Reg. §Treas. Reg. §1.684-2(b) Indirect transfers—(1) In general.
  • Treas. Reg. §Treas. Reg. §1.684-2(c) Constructive transfers.
  • Treas. Reg. §Treas. Reg. §1.684-2(d) Transfers by certain trusts—(1) In general.
  • Treas. Reg. §Treas. Reg. §1.684-2(e) Deemed transfers when foreign trust no longer treated as owned by a U.
  • Treas. Reg. §Treas. Reg. §1.684-2(f) Transfers to entities owned by a foreign trust.
  • Treas. Reg. §Treas. Reg. §1.684-3 Exceptions to general rule of gain recognition
  • Treas. Reg. §Treas. Reg. §1.684-3(a) Transfers to grantor trusts.
  • Treas. Reg. §Treas. Reg. §1.684-3(b) Transfers to charitable trusts.
  • Treas. Reg. §Treas. Reg. §1.684-3(c) Certain transfers at death—(1) Section 1014 basis.
  • Treas. Reg. §Treas. Reg. §1.684-3(d) Transfers for fair market value to unrelated trusts.
  • Treas. Reg. §Treas. Reg. §1.684-3(e) Transfers to which section 1032 applies.
  • Treas. Reg. §Treas. Reg. §1.684-3(f) Certain distributions to trusts.
  • Treas. Reg. §Treas. Reg. §1.684-3(g) Examples.
  • Treas. Reg. §Treas. Reg. §1.684-4 Outbound migrations of domestic trusts
  • Treas. Reg. §Treas. Reg. §1.684-4(a) In general.
  • Treas. Reg. §Treas. Reg. §1.684-4(b) Date of transfer.
  • Treas. Reg. §Treas. Reg. §1.684-4(c) Inadvertent migrations.
  • Treas. Reg. §Treas. Reg. §1.684-4(d) Examples.

1 Citing Cases

Laura Divane v. Northwestern University · Cir.

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