Instructions For Form 500 - Maryland Corporation Income Tax Return

A. The oil percentage depletion allowance as

domestic corporation claiming a foreign tax

forest land, exclusive of federal funds. For

deducted on the federal return, under IRC

credit as dividends under IRC Section 78

information regarding qualifi cation and a

Sections 613 or 613A. Other depletion

(foreign dividend gross-up).

computation of expenses, contact the

allowances that are provided for in Sections

Maryland Department of Natural Resources.

LINE 4b - DIVIDENDS FROM RELATED

613 or 613A are not required as an addition

(See back cover of tax booklet for address

FOREIGN CORPORATIONS

modification.

and phone number.)

Enter dividends received from a corporation if

B. The total amount of additions associated

G. For a Regulated Investment Company, the

the receiving corporation owns, directly or

with business tax credits. Enter the total of

amount of the addition for interest and

indirectly, 50% or more of the paying

lines 1, 2, 3, 7, 10, 11 and 19 from Form

dividends from state or local obligations of

corporation’s outstanding shares of capital stock

500CR, Part W, Business Tax Credit

another state.

and the paying corporation is organized under

Summary.

the laws of a foreign government.

H. Purchase cost of certain poultry or livestock

C. The amount allowed in a prior tax year for

manure spreading equipment as certified

This subtraction is limited to the amount of

reforestation or timber stand improvement if

by the Maryland Department of Agriculture.

dividends included in federal taxable income.

the commercial forest land was decertified

Attach a copy of the certification.

Any amount that exceeds the Maryland

in the previous year. See the corresponding

Expenses incurred to buy and install

modified income calculated without regard to

subtraction modification listed under line 4e

handrails in an existing elevator in a

this subtraction may be carried forward and

for more information.

healthcare facility (as defined in Section

used as an NOL to reduce federal taxable

D. The amount of federal income tax expenses

19-114 of the Health-General Article) or

income. See Administrative Release 18.

attributable to a child care center or family

other building in which at least 50% of the

LINE 4c - INCOME FROM UNITED STATES

day care home, if the center or home is not

space is used for medical purposes.

OBLIGATIONS

licensed or registered as required by

Net subtraction modification to Maryland

Maryland law.

Income attributable to an obligation of the

taxable income when claiming the federal

United States or an instrumentality of the United

E. Net addition modification to Maryland

depreciation allowances from which the

States. (This includes dividends from mutual

taxable income when claiming the federal

State of Maryland has decoupled. Complete

funds that invest in U.S. government obligations.

depreciation allowances from which the

and attach Form 500DM. See Administrative

Only that portion of dividends attributable to

State of Maryland has decoupled. Complete

Release 38.

interest from U.S. obligations can be subtracted.

and attach Form 500DM. See Administrative

K. Net subtraction modification to Maryland

Income from Government National Mortgage

Release 38.

taxable income when the federal special

Association securities may not be subtracted.)

Net addition modification to Maryland

5-year carryback period was used for a net

LINE 4d - SECTION 10-306.1 RELATED

taxable income when the federal special

operating loss under federal law compared

PARTY TRANSACTIONS

5-year carryback period was used for a net

to Maryland taxable income without regard

operating loss under federal law compared

to federal provisions. Complete and attach

Enter the amount of income reported on this

to Maryland taxable income without regard

Form 500DM. See Administrative Release

return to the extent included in the addition for

to the federal provisions. Complete and

38.

disallowed related party transactions on the

attach Form 500DM. See Administrative

Maryland tax return of the related party (line

The amount of wages for which a deduction

Release 38.

2d), or if a similar addition modification is made

is not allowed under IRC Section 280C(a),

on the related party’s return filed in another

G. Amount as required to nullify the impact of

not exceeding the credit allowed for

state.

federal tax changes as determined by the

targeted jobs (Work Opportunity Tax Credit)

Comptroller.

under IRC Section 51.

LINE 4e - OTHER SUBTRACTIONS

H. The adjustment amount from Form 500A,

M. Amount as required to nullify the impact of

If one or more of these apply, enter the total

line 23, when line 23 is a positive amount.

federal tax changes as determined by the

amount on line 4e and identify each item using

Comptroller.

the code letter.

CD. Net addition modification to Maryland

taxable income resulting from the federal

N. The difference between the adjusted basis

A. The percentage of the dividends received

deferral of income arising from business

of certain disposed or transferred assets as

from an affiliated domestic international

indebtedness discharged by reacquisition

recorded in the books of the public service

sales corporation equal to the percentage

of a debt instrument. See Form 500DM.

company and the adjusted basis of the

that would be excluded if the corporation

assets for federal purposes calculated as of

did not qualify under IRC Section 992(a).

DM. Net addition modification from multiple

January 1, 2000. Add to this the amount of

decoupling provisions. See the table at the

B. Profit (without regard to losses) realized

any carryover from a previous year.

bottom of Form 500DM for the line numbers

from the sale or exchange of bonds issued

and code letters to use.

O. The adjustment amount from Form 500A,

by Maryland or a political sub division of

line 23, when line 23 is a negative amount.

Maryland.

DP. Net addition decoupling modification from a

P. Interest on Build America Bonds that is

Pass-through entity. See Form 500DM.

C. The amount of payment for relocation and

included in your federal taxable

assistance under the Maryland Real

Attach a schedule of all items and amounts

NEW

income. See Administrative Release

Property Article, Title 12, Subtitle 2.

reported on line 2g in the same categories as

13.

specified above.

D. Refunds of income tax received from a

CD. Net subtraction modification to Maryland

state or a political subdivision of a state.

LINE 3 - TOTAL

taxable income resulting from the federal

E. Expenses incurred to buy and install

Add the amounts on lines 1 and 2h and enter

ratable inclusion of deferred income arising

conservation tillage equipment (no-till

the total.

from business indebtedness discharged by

planter, no-till drill, deep no-till ripper, and

reacquisition of a debt instrument. See

SUBTRACTION

liquid manure soil injection apparatus), as

Form 500DM.

certified by the Maryland Department of

MODIFICATIONS

DM. Net subtraction modification from multiple

Agriculture. (See back cover of tax booklet

decoupling provisions. See the table at the

All entries must be positive amounts.

for address and phone number.) Attach a

bottom of Form 500DM for the line numbers

copy of the certification.

LINE 4a - DIVIDENDS FOR DOMESTIC

and code letters to use.

CORPORATIONS CLAIMING FOREIGN TAX

Twice the amount of expenses for

DP. Net subtraction decoupling modification

CREDITS

reforestation or timber stand improvement

from a pass-through entity. See Form

activity on 10 to 100 acres of commercial

Enter the amount included in the income of a

500DM.

Instructions For Form 500 - Maryland Corporation Income Tax Return - 2011 Page 7

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