100–181, § 619, substituted “contract or agreement” for “contract of agreement”.
However, the consequence of business trust status was radically altered in 1997. Prior to the 1997 release of the watershed check-the-box regulations, the 1960 "Kintner" federal tax regulations generally incorporated ancient case law to classify trusts.
In that year, the blockbuster "check-the-box" federal tax regulations mercifully mitigated the stakes of a trust being considered a business trust (the regulations were so designated because they allowed lawyers to choose tax classification simply by in effect checking the box relating to the most desired tax classification. Ordinary trusts were classified and taxed like trusts.
Business trusts were considered a corporation or a partnership depending on whether the trust's legal characteristics more closely resembled those of a corporation or a partnership. 344 (1935), the Kintner regulations provided that trusts possessing three of four identified corporate criteria were taxable as corporations (free transferability of interests, limited liability, centralized management, and continuity of life).
Applying standards first articulated in Morrissey v. Trusts possessing less than three of these criteria were taxable as partnerships.
The classification consequences above only occur when a trust is first considered a business trust rather than an ordinary trust. As with other, more general purpose trusts possessing a business purpose and associates, a special purpose trust classified as a business trust will be considered either a disregarded entity (grantor trust with a single owner) or a partnership (trust with multiple beneficiaries) under the check-the-box regulations (unless the trust elects to be taxed like a corporation).