36 LAWS OF MARYLAND. [CH. 11

(e) Income which this State is prohibited from taxing under
the Constitution of the United States, or by any Act of Con-
gress passed pursuant to, and in conformity therewith, and
interest upon the obligations of this State, or any of its
political subdivisions and municipalities.

217. DEDUCTIONS. Taxpayers reporting income as pre-
scribed by this sub-title shall be allowed the following deduc-
tions:

(a) All ordinary and necessary expenses paid or incurred
during the taxable year in carrying on any trade or business,
including a reasonable allowance for salaries or other com-
pensation paid for personal services actualy rendered in pro-
ducing the taxable income.

(b) All interest paid or accrued within the taxable year
except on indebtedness incurred to purchase or continue to
carry property, the income from which is exempt from taxa-
tion under this sub-title.

(c) Property taxes, and other taxes paid to this State or
its political sub-divisions and taxes paid to the United States.

(d) Losses sustained during the taxable year and not com-
pensated for by insurance or otherwise, if incurred in trade
or business, the income from which is subject to taxation under
this sub-title.

(e) Losses sustained during the taxable year and not com-
pensated for by insurance or otherwise, if incurred in any
transaction entered into for profit which profit would be
subject to taxation under this sub-title, though not connected
with the trade or business.

(f) Losses sustained during the taxable year of property not
connected with the trade or business (but in the case of a tax-
payer other than a resident, only of real property 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 other-
wise.

(g) Debts ascertained to be worthless and charged off within
the taxable year. In the case of a debt existing on the effec-
tive date of this sub-title, not more than its fair market value
on that date shall be deducted. A worthless debt arising
after the effective date of this sub-title from unpaid wages, sal-
aries, sales, rent or any similar item of taxable income is
not an allowable deduction unless the income which said item
represents has been included as an income by the taxpayer