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Ch. 45 2006 LAWS OF MARYLAND
Section 10-102.1(a)
Annotated Code of Maryland
(2004 Replacement Volume and 2005 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Tax - General
10-102.1.
(a) (1) In this section the following words have the meanings indicated.
(2) "Distributable cash flow" means taxable income reportable by a
pass-through entity on its federal income tax return for the taxable year:
(i) adjusted, in the case of an entity using the accrual method of
accounting to report federal taxable income, to reflect the amount of taxable income
that would have been reported under the cash method of accounting;
(ii) increased by the sum of:
1. cash receipts for the taxable year that are not includable
in the gross income of the entity, including capital contributions and loan proceeds;
2. amounts allowable to the entity for the taxable year as
deductions for depreciation, amortization, and depletion; and
3. the decrease, if any, in the entity's liability reserve as of
the end of the taxable year; and
(iii) decreased by the sum of:
1. cash expenditures for the taxable year that are not
deductible in computing the taxable income of the entity, not including distributions
to shareholders, partners, or members; and
2. the increase, if any, in the entity's liability reserve as of
the end of the taxable year.
(3) "Liability reserve" means accrued unpaid liabilities that are not
deductible in computing taxable income.
(4) "Member" means:
(i) a shareholder of an S corporation;
(ii) a general or limited partner of a partnership, limited
partnership, or limited liability partnership; [or]
(iii) a member of a limited liability company; OR
(IV) A BENEFICIARY OF A BUSINESS TRUST.
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