HERBERT R. O'CONOR, GOVERNOR. 471

pany or national bank under a deed of trust or like instrument
as collateral security for any bonds, notes, or other obligations
of such corporation, and held as such collateral by such bank,
trust company or national bank (with or without an indi-
vidual co-trustee, resident or non-resident) and such income
shall not be taxable either to such trustee or to such cor-
poration.

(i) Income received by an executor, administrator or per-
sonal representative of a deceased person during the period of
administration of the deceased person's estate, which is sub-
ject to estate, inheritance or succession taxes payable to the
State of Maryland.

(j) Interest upon the obligations of this State, of any coun-
ty, municipal or public corporation, special district or political
subdivision of this State, or of the respective instrumentalities
thereof.

(k) Income which this State is prohibited from taxing
under the Constitution of the United States, or under any Act
of Congress passed pursuant thereto and in conformity there-
with.

217. Deductions. The following deductions shall be
allowed, but in the case of a corporation or a non-resident
only to the extent that they are properly allowable to income
taxable under this sub-title:

(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 for personal services actually rendered in producing
taxable income.

(b) All ground rents and all interest paid or accrued during
the taxable year, except interest on indebtedness incurred to
purchase or continue to carry obligations the income from
which is exempt from taxation under this sub-title.

(c) All taxes paid or accrued during the taxable year to
this State, its political sub-divisions or the United States,
except income, inheritance, estate, succession and gift taxes.

(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 of property
not connected with trade or business (but in the case of a tax-
payer 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.