Ch. 717

LAWS OF MARYLAND

2. IS NOT ATTRIBUTABLE TO MARYLAND
SOURCES.

280B.

(c) The determination of the tax preference items of a
nonresident individual under subsection (a) of this section for
purposes of' this subtitle are governed by the following
provisions:

(1)  The items of tax preference of a nonresident
individual of this State include only those items [which are
properly allocated . to ' this State in accordance with the
provisions of § 287 of this subtitle] BASED ON INCOME TAXABLE IN
THIS STATE.

(2)  Nonresident individuals having tax preference
items [allocable] BASED ON INCOME DERIVED both [within and
without] IN AND OUT. OF this State, are allowed only that
proportion of the exclusion, as provided in this section, as the
items of tax preference [allocable to] BASED ON INCOME TAXABLE IN
this State bear to their total items of tax preference.

281.

(c) A nonresident individual may claim deductions pursuant
to subsection (a) [only to the extent that such deductions are
properly allocable to income taxable pursuant to this subtitle]
IN THE AMOUNT CALCULATED BY:

(1)  MULTIPLYING FEDERAL ITEMIZED DEDUCTIONS BY A
FRACTION WITH MARYLAND ADJUSTED GROSS INCOME AS ITS NUMERATOR AND
FEDERAL ADJUSTED GROSS INCOME AS ITS DENOMINATOR; OR

(2)  USING ANOTHER METHOD THE COMPTROLLER REQUIRES TO
COMPUTE THE DEDUCTIONS PAID FROM MARYLAND ADJUSTED GROSS INCOME.

287.

IN COMPUTING THE MODIFICATION UNDER § 280(C)(20) OF THIS
SUBTITLE, A NONRESIDENT INDIVIDUAL SHALL ALLOCATE TO THE STATE
INCOME DERIVED IN CONNECTION WITH A BUSINESS, OCCUPATION,
PROFESSION, OR TRADE CARRIED ON BOTH IN AND OUT OF THE STATE IN
THE FOLLOWING MANNER:

(1)  BY SEPARATE ACCOUNTING, IF THE COMPTROLLER
PERMITS; OR

(2)  BY THE METHOD THE COMPTROLLER REQUIRES TO FAIRLY
DETERMINE THE PART OF THE INCOME DERIVED FROM OR REASONABLY
ATTRIBUTABLE TO THE TRADE, BUSINESS, PROFESSION, OR OCCUPATION
CARRIED ON IN THE STATE.

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