§ 44-30-17. Share of a resident estate, trust, or beneficiary in Rhode Island fiduciary adjustment. (a) General. An adjustment shall be made in determining Rhode Island income of a resident estate or trust under § 44-30-16, or Rhode Island income of a resident beneficiary of any estate or trust under § 44-30-12(d), in the amount of the share of each in the Rhode Island fiduciary adjustment as determined in this section.

(b) Definition. The Rhode Island fiduciary adjustment shall be the net amount of the modifications described in § 44-30-12 (excluding subdivisions (b)(4), (c)(3) and (c)(4) of that section) and including subsection (d) of that section if the estate or trust is a beneficiary of another estate or trust), which relates to items of income or deduction of an estate or trust.

(c) Shares of Rhode Island fiduciary adjustment.

(1) The respective shares of an estate or trust and its beneficiaries (including, solely for the purpose of this allocation, nonresident beneficiaries) in the Rhode Island fiduciary adjustment shall be in proportion to their respective shares of federal distributable net income of the estate or trust.

(2) If the estate or trust has no federal distributable net income for the taxable years, the share of each beneficiary in the Rhode Island fiduciary adjustment shall be in proportion to his or her share of the estate or trust income for that year, under the law governing the instrument, which is required to be distributed currently and any other amounts of that income distributed in that year. Any balance of the Rhode Island fiduciary adjustment shall be allocated to the estate or trust.

(d) Alternate attribution of modifications. The tax administrator may by regulation authorize the use of any other methods of determining to whom the items comprising the fiduciary adjustment shall be attributed that may be appropriate and equitable, on any terms and conditions that the tax administrator may require.

History of Section. (P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 2001, ch. 364, § 3; P.L. 2002, ch. 65, art. 9, § 1.)