1074

LAWS OF MARYLAND

Ch. 119

portion of the adjusted basis which is not the amortizable
basis.

(k) In the case of property held by one person for life
with remainder to another person, the deduction 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.

(1) 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 § 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 properly chargeable to capital account with
respect to the land on which the demolished structure was
located.

(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.

(o) For the purpose of computing income tax due the
State of Maryland, § 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 § 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 § 170 (b) (1) (A)
of the Internal Revenue Code exclusively for conservation

purposes.

(p) Any person who receives, in accordance with the
provisions of § 12G of this article, a tax credit for
property taxes imposed upon real, property in a political
subdivision which is based on the restoration and
preservation of structures having historic or architectural
value is not entitled to the deductions from State income
tax as provided in this section.]