Ch. 2

LAWS OF MARYLAND

REVISOR'S NOTE: This section is new language derived
Without substantive change from former Art. 81, §
281(d).

The introductory language of this section, "[u]nless
expressly provided otherwise by law," is added for
clarity.

The defined term "Internal Revenue Code" is
substituted for the former reference to "federal
income tax laws", for clarity.

The phrase "for purposes of this title" is substituted
for the former phrase "for State income tax purposes",
for clarity.

The phrase "for that year" is substituted for the
former phrase "for the taxable year in which the
deduction is eliminated, reduced, or substituted with
a credit", for brevity.

Defined terms: "Internal Revenue Code" § 1-101
"Taxable year" § 10-101

10-222. TAX PREFERENCE ITEMS.

(A)  "TAX PREFERENCE ITEMS" DEFINED.

IN THIS SECTION, "TAX PREFERENCE ITEMS" MEAN THE ITEMS THAT:

(1)  TOTAL MORE THAN $10,000 FOR AN INDIVIDUAL RETURN
OR $20,000 FOR A JOINT RETURN;

(2)  ARE DEFINED UNDER § 57 OF THE INTERNAL REVENUE
CODE;

(3)  ARE MODIFIED AND APPORTIONED UNDER § 59 OF THE
INTERNAL REVENUE CODE; AND

(4)  ARE FURTHER MODIFIED BY:

(I)  EXCLUDING THE OIL PERCENTAGE DEPLETION
ALLOWANCE CLAIMED UNDER § 613 OR § 613A OF THE INTERNAL REVENUE
CODE; AND

(II)  ADDING THE AMOUNT ALLOWED TO BE SUBTRACTED
AS AN ADJUSTMENT FOR NET CAPITAL GAINS UNDER § 10-207(N) OF THIS
SUBTITLE.

(B)  TAX PREFERENCE ITEMS OF S CORPORATION SHAREHOLDERS.

EACH SHAREHOLDER OF AN S CORPORATION SHALL REPORT THE
SHAREHOLDER'S PRO RATA SHARE OF THE TAX PREFERENCE ITEMS OF THE
CORPORATION.

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