582 Laws of Maryland [Ch. 406
275. Definitions.
(s) "Accident and Health Welfare Fund or Plan" shall mean a
fund or plan established, maintained and operated in corporate form
or under a trust agreement for the purpose of providing group bene-
fits to employees and their beneficiaries in the event of sickness,
accident or death and into which fund or plan one or more employers
contribute all or part of the requirements of such fund or plan but
shall not include a corporation or organization wholly owned or con-
trolled by such fund or plan and conducting an activity for the pro-
diction of income which is otherwise taxable under this sub-title.
276. Gross Income and Exclusions Therefrom.
"Gross income" means income from whatever source derived, in-
cluding salaries, wages or compensation for personal services of
whatever kind and in whatever form paid; alimony received, interest,
dividends, rents, royalties and annuity income; and gains, profits and
income derived from professions, vocations, trades, business and
commerce. The gross income of an employee shall include the amount
of the employer's contribution to a pension fund or trust which is
not exempt or approved under federal standards, where the em-
ployee's rights may not be forfeited; such income to be taxable in
the year in which the contribution is made [.] and gross income shall
include amounts received by an employee under an accident and
health welfare plan as defined in this sub-title to the extent that such
amounts represent reimbursement for the medical deduction pro-
tided under Section 277 (q-1) hereof and claimed by the employee
in a return filed hereunder for a taxable year prior to the year such
reimbursement is received by the taxpayer. "Gross income" shall not
include the following:
(a) Capital gains realized from the sale, exchange or other dis-
position of property held by a taxpayer (whether or not connected
with his trade or business,) other than stock in trade of the taxpayer
or other property of a kind that would properly be included in the
inventory of the taxpayer if on hand at the close of the taxable year,
or property held by the taxpayer primarily for sale to customers in
the ordinary course of his trade or business.
(b) The proceeds of life insurance policies paid by reason of the
death of the insured, whether in a single sum or otherwise (but if
such amounts are held by the insurer under an agreement to pay
interest thereon, the interest payments shall be included in gross
income).
(c) Amounts received (other than amounts paid by reason of the
death of the insured) under life insurance or endowment contracts,
either during the term or at maturity or upon surrender of the
contract, equal to the total amount of the premiums paid therefor.
(d) The value of property acquired by gift, bequest, devise, inheri-
tance or succession. Beginning with the calendar year 1944 and
thereafter, there shall not be excluded from gross income under this
paragraph, the income from such property, or, in case the gift,
request, devise or inheritance is of income from property, the amount
of such income. For the purposes of this paragraph, if, under the
terms of the gift, bequest, devise, or inheritance, payment, credit, or
distribution thereof is to be made at intervals, to the extent that it
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