3124 ARTICLE 81

(e) Losses sustained during the taxable year of property not connected
with trade or business (but in the case of a taxpayer other than a resident,
only of real or tangible personal property having a permanent situs in this
State), if arising from fire, storms, shipwrecks or other casualty or from
theft and not compensated for by insurance or otherwise.

(f) Debts due the taxpayer arising out of a trade or business the income
from which is subject to taxation under this sub-title, ascertained to be
worthless and charged off within the taxable year. In the case of a debt
existing on January 1st, 1937, not more than its fair market value on that
date shall be deducted. In the case of taxpayers who keep regular books
of account on an accrual basis and according to standard accounting prac-
tice, there may be deducted, in lieu of the foregoing, additions to reserves
for bad debts, under such rules as the comptroller may prescribe. If the
Comptroller at any time shall deem the reserve excessive, he may restore
such excess to the income either in a subsequent year or as a part of the
income of the taxable year in which deducted.

(g) Debts arising after January 1, 1937, ascertained to be worthless
and charged off within the taxable year from unpaid salaries, wages, rent
or any similar item of taxable income to the extent that the income which
said item represents has been included as income by the taxpayer in a
return rendered under this sub-title.

(h) The actual amount paid or incurred during the taxable year for
repairs to and maintenance of buildings and machinery, the income from
which is taxable hereunder.

(i) All fire, tornado and casualty insurance premiums paid or accrued
during the taxable year in connection with property the income from which
is subject to taxation under this sub-title.

(j) A reasonable allowance for exhaustion, wear and tear of property
used in trade or business, including a reasonable allowance for obsolescence,
and in the case of natural resources, allowance for depletion, as permitted
by rules and regulations of the Comptroller.

(k) Contributions or gifts actually paid by individuals within the tax-
able year to or for the use of: (1) this State, its institutions, or any politi-
cal sub-division of the State exclusively for public purposes; (2) any
corporation, or trust, or community fund, or foundation, no part of the
net income of which inures to the benefit of any private shareholder or
individual, but only if such contributions or gifts are dedicated exclusively
for religious, charitable, scientific, literary or educational purposes; or
(3) a fraternal society or organization, operating under the lodge system,
but only if such contributions or gifts are dedicated exclusively for re-
ligious, charitable, scientific, literary or educational purposes; to an amount
which, in all the above cases combined, does not exceed fifteen per cent.
(15%) of the taxpayers' net income as computed without the benefit of
this sub-section. Such contributions or gifts shall be allowable as deduc-
tions only if verified under the rules and regulations prescribed by the
Comptroller.

(1) Losses from lawful wagering transactions incurred and paid during
the taxable year but only to the extent of gains derived therefrom.

(m) All ordinary and necessary expenses (not otherwise herein pro-
vided for) paid or incurred during the taxable year for the acquisition
of income or the care of income-producing property.

(n) Net additions to legal reserves for the taxable year, as required
by law, in the case of life insurance companies and/or mutual fire insur-
ance companies.