Md. Code Regs. 03.04.07.01

Current through Register Vol. 51, No. 22, November 1, 2024

Section 03.04.07.01 - Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Distributable cash flow" has the meaning stated in Tax-General Article, §10-102.1(a)(2), Annotated Code of Maryland.

(2) "Distributive share of partnership income" means the total distributive share of income (loss) items as reported on Schedule K of the federal partnership return, Form 1065, less interest from U.S. obligations.

(3) "Member" has the meaning stated in Tax-General Article, §10-102.1(a)(4), Annotated Code of Maryland.

(4) "Multistate pass-through entity" means a pass-through entity doing business within and outside the State.

(5) "Nonresident entity" has the meaning stated in Tax-General Article, §10-102.1(a)(5), Annotated Code of Maryland.

(6) "Nonresident member" includes, unless specifically designated elsewhere, a nonresident individual member and a nonresident entity member.

(7) "Nonresident taxable income" means:

(a) For a pass-through entity that is a partnership (including a limited liability company taxed as a partnership and a business trust taxed as a partnership), the total nonresident members' share of the distributive share of partnership income allocated to this State; and

(b) For a pass-through entity that is an S corporation, the total nonresident members' pro rata share of S corporation income allocated to this State.

(8) "Pass-through entity", unless specifically designated elsewhere, has the meaning stated in Tax-General Article, §10-102.1(a)(7), Annotated Code of Maryland.

(9) "Pass-through entity's taxable income" means the portion of a pass-through entity's income under the federal Internal Revenue Code, calculated without regard to any deduction for taxes based on net income that are imposed by any state or political subdivision of a state, that is derived from or reasonably attributable to the trade or business of the pass-through entity in this State.

(10) "Pro rata share of S corporation income" means the total of the pro rata share of income (loss) items reported on Schedule K of Form 1120S, U.S. Income Tax Return for an S corporation, less interest from U.S. obligations.

Md. Code Regs. 03.04.07.01

Regulation .01B amended effective March 29, 1993 (20:6 Md. R. 579); amended effective 49:9 Md. R. 529, eff. 5/2/2022