03.04.07.01

.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 in more than one 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) "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.