Theodore R. McKeldin, Governor      241

(1951 Edition—being Section 224A of the 1939 Edition),
title "Revenue and Taxes," sub-title "Income Tax," re-
lating to the optional standard deduction for individuals
paying a State income tax and clarifying the provisions
as to said deduction.

Section 1. Be it enacted by the General Assembly of
Maryland, That Section 277A of Article 81 of the Anno-
tated Code of Maryland (1951 Edition—being Section
224A of the 1939 Edition), title "Revenue and Taxes," sub-
title "Income Tax," be and it is hereby repealed and re-
enacted, with amendments, to read as follows:

277A. Optional Standard Deduction for Individuals.
[In the case of an individual, at his election, a standard
deduction shall be allowed which deduction shall be in lieu
of deductions provided for in Section 277 of this sub-title.]
For all calendar years beginning after December SI, 1950,
and for all fiscal years ending after said date, an individual,
excluding, however, fiduciaries to the extent included under
sub-section (e) and defined under sub-section (f) of Sec-
tion 275 of this sub-title, shall be allowed a standard de-
duction, which shall be allowed only if the individual elects
to claim it. Where the individual elects to claim the op-
tional standard deduction here provided, such deduction
shall be in lieu of all non-business ground rents and in-
terest paid or incurred, taxes, casualty losses, including
theft, non-business contributions, medical expenses, ali-
mony and losses to the extent provided in Section 277 (d)-
(1) of this sub-title. The standard deduction herein pro-
vided for shall not be in lieu of the deductions provided in
Section 277 of this sub-title to the extent paid or incurred
in carrying on a trade or business, including traveling ex-
penses deductible in sub-section (r) of Section 277 and ex-
penses, including losses paid or incurred in the acquisition
of or care of income-producing property to the extent under
sub-sections (d)-(l) and (m) of Section 277. The standard
deduction provided for by this section shall be in an amount
equal to ten percent (10%) of the gross income of the tax-
payer as computed in accordance with the provisions of
this sub-title but in no event shall the standard deduction
exceed Five Hundred Dollars ($500.00). In the case of
husband and wife filing a joint return, said return, for the
purposes of this section, shall be considered the return of
two taxpayers; however, the standard deduction provided
for in this section shall not be allowed to either if the net
income of one of the spouses is determined without regard
to such standard deduction or without regard to Section