THEODORE R. MCKELDIN, GOVERNOR 1805

outside this State. The portion of the business income derived
from or reasonably attributable to the trade or business carried
on within this State [shall] may be determined by separate
accounting where practicable, but never in the case of a uni-
tary business; [but] however, where separate accounting is
[not] neither allowable nor practicable the portion of the
business income of the corporation allocable to this State shall
be determined £in such manner as may be prescribed by regula-
tion of the Comptroller. The Comptroller is hereby authorized
to prescribe by regulations such method or methods of allocat-
ing the business income of corporations as may justly and
fairly determine the portion thereof derived from or reasonably
attributable to the trade or business carried on within this
State. ] in accordance with a three-factor formula of property,
payroll and sales, in which each factor shall be given equal
weight and in which the property factor shall include rented
as well as owned property and tangible personal property hav-
ing a permanent situs within this State and used in the trade
or business shall be included as well as real property. The
Comptroller of the Treasury shall have the right, in those cases
where circumstances warrant, to alter any of the above rules
as to the use of the separate accounting method or the formula
method, the weight to be given the various factors in the
formula, the manner of valuation of rented properly included
in the property factor and the determination of the extent to
which tangible personal property is permanently located with-
in the State.

SEC. 2. And be it further enacted, That two new sub-sec-
tions be and they are hereby added to Section 224 of Article
81 of the Annotated Code of Maryland (1947 Supplement),
title "Revenue and Taxes", sub-title "Income Tax", said new
sub-sections to be known respectively as Sub-sections (d-1)
and (s) and to follow immediately after Sub-section (d) and
Sub-section (r) of said section, respectively, and to read as
follows:

224.

(d-1) Losses sustained during the taxable year in transac-
tions entered into for profit and not connected with taxpayer's
trade or business, and not compensated for by insurance or
otherwise, if incurred in transactions entered into for profit
to the extent that the income from such transactions is subject
to taxation under this sub-title. No deduction shall be allowed,
however, for such losses which would amount to the allowance
of a capital loss or loss on sale or exchange of capital assets
or loss on a non-business debt, or loss on sole or exchange of
any assets, sale or exchange of which is taxed at other than