§ 44-30-36 - Share of a nonresident estate, trust, or beneficiary in income from Rhode Island sources.
SECTION 44-30-36
§ 44-30-36 Share of a nonresident estate,trust, or beneficiary in income from Rhode Island sources. – (a) General. The share of a nonresident estate or trust under §44-30-35(1) and the share of a nonresident beneficiary of any estate or trustunder § 44-30-32(a) in estate or trust income and deduction from RhodeIsland sources shall be determined as follows:
(1) Items of distributable net income from Rhode Islandsources. There shall be determined the items of income and deduction,derived from or connected with Rhode Island sources, which enter into thedefinition of "federal distributable net income" of the estate or trust for thetaxable year, including the items from another estate or trust of which thefirst estate or trust is a beneficiary. The determination of source shall bemade under regulations of the tax administrator in keeping with the applicablerules of § 44-30-32 as if the estate or trust were a nonresidentindividual.
(2) Addition or subtraction of modifications. Thereshall be added to or subtracted from, as the case may be, the modificationsdescribed in § 44-30-12(b) and (c)(excluding subdivisions (b)(4), (c)(3)and (c)(4) of that section) to the extent relating to items of income anddeduction, derived from or connected with Rhode Island sources, which enterinto the definition of "federal distributable net income", including the itemsfrom another estate or trust of which the first estate or trust is abeneficiary. No modification shall be made under this subsection that has theeffect of duplicating an item already reflected in the definition of "federaldistributable net income".
(i) The amounts determined under subdivisions (1) and (2) ofthis subsection shall be allocated among the estate or trust and itsbeneficiaries, including, solely for the purpose of this allocation, residentbeneficiaries, in proportion to their respective shares of federaldistributable net income.
(ii) The amounts so allocated shall have the same characteras for federal income tax purposes. Where an item entering into the computationof the amounts is not characterized for federal income tax purposes, it shallhave the same character as if realized directly from the source from whichrealized by the estate or trust, or incurred in the same manner as incurred bythe estate or trust.
(1) If the estate or trust has no federal distributable netincome for the taxable year, the share of each beneficiary, including, solelyfor the purpose of this allocation, resident beneficiaries, in the net amountdetermined under subdivisions (a)(1) and (a)(2) of this section shall be inproportion to his share of the estate of trust income for that year, underlocal law or the governing instrument, which is required to be distributedcurrently and any other amounts of the income distributed in that year. Anybalance of the net amount shall be allocated to the estate or trust.
(2) The tax administrator may by regulation authorize the useof any other methods of determining the respective shares of the beneficiariesand of the estate or trust in its income derived from Rhode Island sources, andthe modification related thereto that may be appropriate and equitable, on anyterms and conditions that the tax administrator may require.