Grady v. Commissioner of Revenue

This is an appeal by John K. Grady and Elizabeth Grady (taxpayers) pursuant to G. L. c. 58A, § 13 (1994 ed.), from a decision of the Appellate Tax Board (board) affirming the refusal of the Commissioner of Revenue (commissioner) to grant a partial abatement of income taxes paid by them. We reverse the board’s decision.

During 1984 and 1985, the two tax years in question, the taxpayers held interests in two Federal Subchapter S corporations which in those years made distributions to the taxpayers. The distributions did not exceed the taxpayers’ *375adjusted basis in their stock, and the…