§ 44-30-54 - Change of resident status during year.
SECTION 44-30-54
§ 44-30-54 Change of resident statusduring year. – (a) General. Subject to regulations of the tax administrator, if anindividual changes his or her status during his or her taxable year fromresident to nonresident, or from nonresident to resident, the individual shallfile one return as a resident for the portion of the year during which theindividual is a resident, and one return as a nonresident for the portion ofthe year during which the individual is a nonresident.
(b) Rhode Island income as resident and nonresident.The Rhode Island income for the portion of the year during which the individualis a resident shall be determined, except as provided in subsection (c) of thissection, under part II of this chapter as if his or her taxable year forfederal income tax purposes were limited to the period of his or her residentstatus. The Rhode Island income for the remaining portion of his or her taxableyear during which the individual is a nonresident shall be determined, exceptas provided in subsection (c) of this section, under part III of this chapteras if his or her taxable year for federal income tax purposes were limited tothe period of his or her nonresident status.
(1) If an individual changes his or her status from residentto nonresident, the individual shall, regardless of his or her method ofaccounting, accrue for the portion of the taxable year prior to the change ofstatus any items of income or deduction accruing prior to the change of status,if not otherwise properly includible, whether or not because of an election toreport on an installment basis, or allowable for Rhode Island income taxpurposes for that portion of the taxable year or for a prior taxable year. Theamounts of the accrued items shall be determined with the applicablemodifications described in § 44-30-12 as if the accrued items wereincludible or allowable for federal income tax purposes.
(2) If an individual changes his or her status fromnonresident to resident, the individual shall, regardless of his or her methodof accounting, accrue for the portion of the taxable year prior to the changeof status any items of income or deduction accruing prior to the change ofstatus, other than derived from or connected with Rhode Island sources, if nototherwise properly includible (whether or not because of an election to reporton an installment basis) or allowable for federal income tax purposes for thatportion of the taxable year or a prior taxable year. The amounts of the accrueditems shall be determined with the applicable modifications described in §44-30-12 as if the accrued items were includible or allowable for federalincome tax purposes.
(3) No item of income or deduction, which is accrued underthis subsection, shall be taken into account in determining Rhode Island incomeor Rhode Island deductions for any subsequent taxable period.
(4) The accruals under this subsection shall not be requiredif the individual files with the tax administrator a bond or other securityacceptable to the tax administrator, conditioned upon the inclusion of amountsaccruable under this subsection in Rhode Island income for one or moresubsequent taxable years as if the individual had not changed his or herresident status.
(d) Minimum Tax. Where two (2) returns are requiredunder this section, the total of the taxes due thereon shall not be less thanwould be due if the Rhode Island incomes reportable on the two (2) returns wereincludible in one return.
(e) Prorations. Where two (2) returns are requiredunder this section, the federal standard deduction and the federal personalexemptions shall be prorated, under regulations of the tax administrator,between the two (2) returns to reflect the portions of the entire taxable yearduring which the individual was a resident and a nonresident.