Massachusetts Trust

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Massachusetts Trust

A trust whereby the trustee or trustees run a business on behalf of beneficiaries. That is, the trustees act as the managers and the beneficiaries act as shareholders. Beneficiaries may sell their position as beneficiaries. The trustees own all property associated with the business. Income from a Massachusetts trust may be taxed more favorably than other income. The term derives from the first such trust, which was formed in Massachusetts in the late 19th century to avoid local real estate regulation. It is also called a business trust or an unincorporated business organization.
References in periodicals archive ?
The limitation now creates a potential constitutional problem between the treatment of incorporated and unincorporated business organizations
Current law requires that unincorporated business organizations use the classification rules of Regs.
In Notice 95-14, the IRS and Treasury announced their intention to consider simplifying the existing entity classification regulations to permit taxpayers to elect to treat certain domestic unincorporated business organizations as partnerships or as associations for federal tax purposes.
The Service has recently announced in Notice 95-14 that it is considering simplification of the regulations to allow unincorporated business organizations to elect status as a partnership or as a taxable corporation.