B. W. Co. v. State Tax Commission

This case presents the question whether gain realized from the sale of trust assets under a plan of liquidation adopted, pursuant to § 337 of the Internal Revenue Code (Code) was taxable to the trust under the Massachusetts income tax laws applicable in 1971 and 1972 to trusts with transferable shares. We hold that such a gain was not so taxable under the law then in effect.

In March, 1971, the B. W. Company (taxpayer), then named the Boston Wharf Company, entered into an agreement to sell certain real estate. In April, 1971, the taxpayer adopted a plan of complete liquidation and sold the…