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§10-402. Same - For corporation.
(a) In general.- In computing Maryland taxable income, a corporation shall allocate Maryland modified income derived from or reasonably attributable to its trade or business in this State in the following manner:
(1) if a corporation carries on its trade or business wholly within the State, the corporation shall allocate to the State all of the Maryland modified income of the corporation; and
(2) if a corporation carries on its trade or business in and out of the State, the corporation shall allocate to the State the part of the corporation's Maryland modified income that is derived from or reasonably attributable to the part of its trade or business carried on in the State, in the manner required in subsection (b), (c), or (d) of this section.
(b) Determination - By separate accounting.-
(1) Except as provided in subsection (c) or (d) of this section, the part of the corporation's Maryland modified income derived from or reasonably attributable to trade or business carried on in the State may be determined by separate accounting if practicable.
(2) If in any taxable year a corporation is permitted or required to use the separate accounting method in determining all or a portion of its Maryland taxable income, the portion that is separately accounted for to Maryland shall be taxable whether or not the Maryland modified income of the corporation for the taxable year is zero or less.
(c) Same - By 3-factor apportionment formula.-
(1) If the trade or business is a unitary business, the part of the corporation's Maryland modified income derived from or reasonably attributable to trade or business carried on in the State shall be determined using a 3-factor apportionment fraction:
(i) the numerator of which is the sum of the property factor, the payroll factor, and twice the sales factor; and
(ii) the denominator of which is 4.
(2) The property factor under paragraph (1) of this subsection shall include:
(i) rented and owned real property; and
(ii) tangible personal property located in the State and used in the trade or business.
(d) Same - By Comptroller.- To reflect clearly the income allocable to Maryland, the Comptroller may alter, if circumstances warrant, the methods under subsections (b) and (c) of this section, including:
(1) the use of the separate accounting method;
(2) the use of the 3-factor double weighted sales factor formula method;
(3) the weight of any factor in the 3-factor formula;
(4) the valuation of rented property included in the property factor; and
(5) the determination of the extent to which tangible personal property is located in the State.
[An. Code 1957, art. 81, § 316; 1988, ch. 2, § 1; 1989, ch. 5, § 1; ch. 171; 1992, ch. 249; 1992, 1st Sp. Sess., ch. 1, § 6.]
§10-501. In general.
A person who files a federal income tax return shall compute Maryland taxable income for the same annual accounting period and by the same accounting method that is used to compute the income reported on the federal return.
[An. Code 1957, art. 81, § 284; 1988, ch. 2, § 1.]
§10-502. When federal return not filed.
(a) Cash or accrual method.- If a person does not file a federal income tax return, the person shall compute Maryland taxable income in accordance with the cash or accrual accounting method that:
(1) the person uses to compute income regularly in keeping the person's books; or
(2) the Comptroller requires to reflect clearly the person's income.
(b) Calendar or fiscal accounting period.- If a person does not file a federal income tax return, the person shall compute Maryland taxable income:
(1) for the calendar year; or
(2) if the person keeps adequate records for an annual fiscal year accounting period, for the fiscal year.
[An. Code 1957, art. 81, § 284; 1988, ch. 2, § 1.]
§10-503. When individual dies.
The taxable year of an individual terminates on the date of death.
[1988, ch. 2, § 1.]