§ 44-30-15 - Resident partners. - Rhode Island Statutes

SECTION 44-30-15

   § 44-30-15  Resident partners. – (a) Partner's modifications. In determining Rhode Island income of aresident partner, any modification described in subsection (b), (c), or (d) of§ 44-30-12, which related to an item of partnership income or deductionshall be made in accordance with the partner's distributive share, for federalincome tax purposes, of the item to which the modification relates. Where apartner's distributive share of any item is not required to be taken intoaccount separately for federal income tax purposes, the partner's distributiveshare of the item shall be determined in accordance with his distributive sharefor federal income tax purposes of partnership taxable income or loss generally.

   (b) Character of items. Each item of partnershipincome or deduction shall have the same character for a partner as for federalincome tax purposes. Where an item is not characterized for federal income taxpurposes, it shall have the same character for a partner as if realizeddirectly from the source from which realized by the partnership or incurred inthe same manner as incurred by the partnership.

   (c) Rhode Island tax avoidance or evasion. Where apartner's distributive share of an item of partnership income or deduction isdetermined for federal income tax purposes by special provision in thepartnership agreement with respect to the item, and where the principal purposeof the provision is the avoidance or evasion of the Rhode Island personalincome tax, the partner's distributive share of the item, and any modificationrequired with respect thereto, shall be determined as if the partnershipagreement made no special provision with respect to the item.