3162

LAWS OF MARYLAND

[Ch. 711

UNDER THIS SECTION SHALL BE COMPUTED AS IF THE LIFE
TENANT WERE THE ABSOLUTE OWNER OF THE PROPERTY AND SHALL
BE ALLOWABLE TO THE LIFE TENANT.

(L) GAIN FROM THE SALE OR EXCHANGE OF PROPERTY, TO
THE EXTENT THAT THE ADJUSTED BASIS OF THE PROPERTY IS
LESS THAN ITS ADJUSTED BASIS WITHOUT REGARD TO THIS
SECTION, SHALL BE CONSIDERED AS GAIN FROM THE SALE OR
EXCHANGE OF PROPERTY WHICH IS NEITHER A CAPITAL ASSET NOR
PROPERTY USED IN THE TRADE OR BUSINESS.

(M) IN THE CASE OF THE DEMOLITION OF A CERTIFIED
HISTORIC STRUCTURE:

(1)    NO DEDUCTION OTHERWISE ALLOWABLE UNDER
SECTION 280(A) OF ARTICLE 81 OF THIS CODE MAY BE ALLOWED
TO THE OWNER OR LESSEE OF THE STRUCTURE FOR ANY AMOUNT
EXPENDED FOR THE DEMOLITION OR ANY LOSS SUSTAINED ON
ACCOUNT OF THE DEMOLITION; AND

(2)    AMOUNTS DESCRIBED IN PARAGRAPH (1) SHALL
BE TREATED AS PROPERTY CHARGEABLE TO CAPITAL ACCOUNT WITH
RESPECT TO THE LAND ON WHICH THE DEMOLISHED STRUCTURE WAS
LOCATED; AND

(3)     FOR PURPOSES OF THIS SUBSECTION, ANY
BUILDING OR OTHER STRUCTURE LOCATED IN A REGISTERED
HISTORIC DISTRICT SHALL BE TREATED AS A CERTIFIED
HISTORIC STRUCTURE UNLESS THE UNITED STATES SECRETARY OF
THE INTERIOR HAS CERTIFIED, PRIOR TO THE DEMOLITION OF
THE STRUCTURE, THAT THE STRUCTURE IS NOT OF HISTORIC
SIGNIFICANCE TO THE DISTRICT.

(N) PURSUANT TO REGULATIONS PRESCRIBED BY THE STATE
COMPTROLLER OR HIS DELEGATE, THE TAXPAYER MAY ELECT TO
COMPUTE THE DEPRECIATION DEDUCTION ATTRIBUTABLE TO
SUBSTANTIALLY REHABILITATED PROPERTY AS THOUGH THE
ORIGINAL USE OF THE PROPERTY COMMENCED WITH HIM.

(0) FOR THE PURPOSE OF COMPUTING INCOME TAX DUE THE
STATE OF MARYLAND, SECTION 170(F)(3) OF THE INTERNAL
REVENUE CODE DOES NOT APPLY TO A CONTRIBUTION OF:

(1)     A LEASE ON, OPTION TO PURCHASE, OR
EASEMENT WITH RESPECT TO REAL PROPERTY OF NOT LESS THAN
30 YEARS DURATION TO AN ORGANIZATION DESCRIBED IN SECTION
170(B)(1)(A) OF THE INTERNAL REVENUE CODE EXCLUSIVELY FOR
CONSERVATION PURPOSES; OR

(2)    A REMAINDER INTEREST IN REAL PROPERTY
WHICH IS GRANTED TO AN ORGANIZATION DESCRIBED IN SECTION
170(B)(1)(A) OF THE INTERNAL REVENUE CODE EXCLUSIVELY FOR
CONSERVATION PURPOSES.