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                           2023 INSTRUCTIONS FOR FILING RI-1040C 
                           For more information on filing a Composite Return or to obtain forms, refer to the 
                   Rhode Island Division of Taxation’s website : www.tax.ri.gov or call (401) 574-8829, option #3.

      GENERAL INFORMATION                          portal account and a PIN number. If you do not         or loss on the sale or other disposition of the 
                                                   have both of those required items already, be          asset is to be determined, for Rhode Island 
Form RI-1040C is used to report the Rhode          sure to timely create your portal account              purposes, using the Rhode Island depreciation 
Island source income of qualified electing non-    and/or request a PIN number so that you are            schedule. 
resident members of LLCs, Sub S                    set up and ready to file your return and/or             
Corporations, Partnerships, and Trusts.            remit your payment by the due date. You do                    For  further  information  regarding  bonus 
                                                   not need a portal account to request a PIN             depreciation or section 179  depreciation refer 
If a pass-through entity is doing business in      number.                                                to the General Instructions of Form RI-
Rhode Island, or has income, gain, loss, or                                                               1040NR, Rhode Island Nonresident Income 
deduction derived from or connected with           YOU MAY BE SUBJECT TO A PENALTY                        Tax return. 
sources within Rhode Island, it can file a com-    FOR FAILURE TO FILE RETURNS AND/OR                      
posite return on behalf of those qualified elect-  REMIT PAYMENTS VIA ELECTRONIC                          Line 2c - Enter the taxable portion of the 
ing nonresident members.  All of the qualified     MEANS.                                                 Paycheck Protection Program Loan amount 
electing nonresident members must have the                                                                under R.I. Gen. Laws §  44-30-12(b)(8). 
same taxable year.                                 If you are not required to file and pay via elec-       
                                                   tronic means, use the following address to             Line 2d - Enter any other modifications 
In order to be included in the composite filing,   send in your return, attachments and pay-              increasing Federal  Taxable Income and pro-
the nonresident member must complete a             ments:                                                 vide an explanation for the modification. 
Form RI 1040C-NE and file it with the entity                                                               
from which they are receiving the Rhode                     R.I. Division of Taxation                     Line 3 - Total Modifications Increasing Federal 
Island source income.  The entity must keep                 One Capitol Hill                              Taxable Income: Add lines 2a, 2b, 2c and 2d. 
all of these election forms on file and be able             Providence, RI 02908-5806                      
to furnish them to the Rhode Island Division of                                                           Line 4 - Modifications  Decreasing Federal 
Taxation upon request.                                                                                    Taxable Income 
                                                        SPECIFIC INSTRUCTIONS                              
DUE DATE: RI-1040C is due on the fifteenth                                                                Line 4a - Enter any income from obligations of 
day of the third month following the close of      Complete the top of the return by filling in the       the United States Government to the extent 
the taxable year of the pass-through entity.   name, address and federal employer identifi-               that it is included in income for federal tax pur-
(March 15, 2024 for calendar year taxpayers).    cation number.   Also, check off the entity’s            poses but exempt for state purposes. 
                                                   year end.  If not a calendar year end, indicate         
                                                   the beginning and end dates of the entity’s fis-       Line 4b - Enter Bonus Depreciation and  
   ELECTRONIC MANDATE                              cal year.  Only entities with a fiscal year begin-     Section 179 Depreciation that has not been 
                                                   ning in 2023 may use this form.                        taken for federal purposes because the depre-
The Rhode Island Division of Taxation has an                                                              ciation was not taken originally. 
electronic mandate that requires Larger            Check the “Amended” box if filing an amended            
Business Registrants use electronic means to       2023 RI-1040C.                                                Since a bill was passed disallowing feder-
file returns and remit taxes beginning on                                                                 al bonus depreciation for Rhode Island pur-
January 1, 2023.                                    SECTION A: COMPUTATION OF INCOME                      poses, in the first year any bonus depreciation 
                                                                                                          taken for federal purposes should have been 
A "larger business registrant" is defined as any   Line 1 - Enter your total Federal  Taxable             added back as a modification to income.  
person who:                                        Income from Federal Form 1120S, line 22,               Therefore, in subsequent years, if federal 
1) Operates as a business whose combined           Federal Form 1065, line 23 or Federal Form             depreciation is less than what previously 
annual liability for all taxes administered by the 1041, line 23, and add to that any separately          would have been allowed, the difference can 
Division of Taxation for the entity is or exceeds  stated income or deductions listed on your             be deducted as a modification to income. 
$5,000; or                                         Federal K-1.                                            
2) Operated as a business whose annual                                                                           Since  a  bill  was  passed  disallowing  the 
gross income is over $100,000 for the entity.      Line 2 - Modifications Increasing Federal              increase in the section 179 depreciation under 
                                                   Taxable Income                                         the Jobs and Growth Tax Relief Reconciliation 
If you meet either of the above criteria you are                                                          Act of 2003, section 179 depreciation will 
required to file returns and remit taxes elec-     Line 2a - Enter any income from obligations of         remain limited to $25,000 for Rhode Island 
tronically.                                        any state or its political subdivisions, other         purposes.  Therefore, in the first year any addi-
                                                   than Rhode Island.                                     tional section 179 depreciation taken for feder-
Visit the RI Division of Taxation’s website for                                                           al purposes should have been added back as 
additional information.                            Line 2b - Enter Bonus Depreciation that must           a modification to income.  Accordingly, in sub-
                                                   be added back to Rhode Island income.                  sequent years, if federal depreciation is less 
Taxation website:                                                                                         than what previously would have been 
https://tax.ri.gov/online-services/tax-portal             Due  to  the  passage  of  a  bill  disallowing allowed, the difference can be deducted as a 
                                                   federal bonus depreciation for Rhode Island            modification to income. 
Taxation’s portal website:                         purposes, any bonus depreciation taken for                    A separate schedule of depreciation must 
https://taxportal.ri.gov/                          federal purposes must be added back as a               be kept for Rhode Island purposes.  The gain 
                                                   modification to income.                                or loss on the sale or other disposition of the 
In order to file your return and/or remit your                                                            asset is to be determined, for Rhode Island 
payment through the portal, you will need a               A separate schedule of depreciation must        purposes, using the Rhode Island depreciation 
                                                   be kept for Rhode Island purposes.  The gain           schedule. 

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2023 INSTRUCTIONS FOR FILING RI-1040C
For more information on filing a Composite Return or to obtain forms, refer to the
Rhode Island Division of Taxation’s website : www.tax.ri.gov or call (401) 574-8829, option #3.

For further information regarding bonus and attach the extension form, Form RI- Add lines 23a, 23b, 23c and 23d.
depreciation or section 179 depreciation refer 4868C, to your return.
to the General Instructions of Form RI- Line 23f - Average Rhode Island Net Book
1040NR, Rhode Island Nonresident Income Line 16 - Total Payments: Add lines 12, 13, 14 Value Ratio - divide line 23e in column A by
Tax return. and 15. line 23e in column B (Calculate ratio to four
decimal places.)
Line 4c - Enter any other modifications Line 17 - Amount due: If line 11 is larger than
decreasing Federal Taxable Income and pro- line 16, subtract line 16 from line 11. This is Receipts
vide an explanation for the modification. the amount of tax you owe. Line 24a - Enter the Rhode Island amount for
sales under R.I.G.L. 44-11-14(a)(2)(i)(B), the
Line 5 - Total Modifications Decreasing Line 18 - Underestimating interest due. amount for all other Rhode Island sales and
Federal Taxable Income: Add lines 4a, 4b and 4c. the Total amount for Gross Receipts.
Line 19 - Total amount due: Add the tax due
Line 6 - Modified Federal Taxable Income: from line 17 to the underestimating interest Due to the passage of R.I.G.L. 44-11-
Add line 1 to line 3 and then subtract line 5. due from line 18. This is the total amount due. 14(a)(2)(i)(B), gross sales of tangible per-
(Line 1 + line 3 - line 5) Complete payment voucher RI-1040C-V and sonal property where shipments are made
send in with return and payment made to R.I. from an office, store, warehouse, factory or
Line 7 - Rhode Island apportionment ratio: If Division of Taxation. other place of storage in this state and the
the entity operates solely in Rhode Island, taxpayer is not taxed in the state of pur-
enter 1.0000. If it is a multistate entity, enter Line 20 - Overpayment: If line 11 is smaller chase must now be included in the
computed ratio from line 27 of apportionment than line 16, subtract line 11 from line 16. This Receipts section of the Rhode Island
worksheet located on page 2, Section C. is your overpayment amount. apportionment column. This gross
(Calculate ratio to four decimal places.) receipts amount will be listed separately on
If there is an amount due on line 18 for under- the apportionment schedule from the
Line 8 - Rhode Island Source Income: Multiply estimating interest, subtract line 18 from line 20. amount of all other Rhode Island sales.
your Modified Federal Taxable Income (line 6)
by the apportionment ratio (line 7). If the amount of underestimating interest from Line 24b - Enter the Rhode Island and the
line 18 is more than the amount of overpay- Total amounts for Dividends.
ment from line 20, subtract line 20 from line 18
SECTION B: COMPUTATION OF TAX and enter the result on line 19. Line 24c - Enter the Rhode Island and the
Total amounts for Interest.
Line 9 - Calculate the Rhode Island income Line 21 - Enter the amount of the overpay-
tax using the Rhode Island Composite Income ment from line 20 that you would like refunded. Line 24d - Enter the Rhode Island and the
Tax rate of 5.99% (0.0599). Total amounts for Rents.
Line 22 - Enter the amount of the overpay-
Line 10 - Qualified electing nonresident mem- ment from line 20 that you would like applied Line 24e - Enter the Rhode Island and the
bers’ percentage of ownership. If all members to your 2024 RI-1040C estimated tax. Total amounts for Royalties.
are nonresidents, enter 1.0000. (Calculate
ratio to four decimal places.) Line 24f - Enter the Rhode Island and the
SECTION C: APPORTIONMENT Total amounts forNet Capital Gains.
Line 11 - Rhode Island Tax of the qualified In the apportionment section, you will be using
electing nonresident members: Multiply Rhode a three factor formula to determine the Rhode Line 24g - Enter the Rhode Island and the
Island Income Tax (line 9) by the qualified Island apportionment ratio for the qualified Total amounts for Ordinary Income.
electing nonresident members’ percentage of electing nonresident members.
ownership (line 10). Line 24h - Enter the Rhode Island and the
In column A, enter the Rhode Island portion of Total amounts for Other Income.
Line 12 - Rhode Island estimated payments each item. In column B, enter the Total (from
made on RI-1040C-ES and amount applied everywhere) amount of each item. Line 24i - Enter the Rhode Island and the
from 2022 composite return. Total amounts for Income Exempt from
Average Net Book Value Federal Taxation.
Line 13 - Enter any nonresident real estate Line 23a - Enter the Rhode Island and the
withholding paid on behalf of the qualified Total amounts for Inventory. Line 24j - Total the Receipts items - Add lines
electing nonresident members. 24a, 24b, 24c, 24d, 24e, 24f, 24g, 24h and 24i.
Line 23b - Enter the Rhode Island and the
Line 14 - Enter any Rhode Island nonresident Total amounts for Depreciable Assets. Line 24k - Average Rhode Island Receipts
withholding from pass-through entities from Ratio - Divide line 24j in column A by line 24j in
Form RI K-1, Schedule IV, line 2 that was Line 23c - Enter the Rhode Island and the column B. (Calculate ratio to four decimal
made on behalf of entity members before Total amounts for Land. places.)
electing to be included on the composite
return. Be sure to attach the Form(s) RI K-1 to Line 23d - Enter the Rhode Island and the Salaries
the composite filing. Total amounts for Rent (8 times the annual net Line 25a - Enter the Rhode Island and the
rental rate). Total amounts for Salaries and Wages paid or
Line 15 - Other payments: If an extension was incurred.
filed, enter the amount paid with the extension Line 23e - Total the Net Book Value items -

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                           2023 INSTRUCTIONS FOR FILING RI-1040C 
                           For more information on filing a Composite Return or to obtain forms, refer to the 
                  Rhode Island Division of Taxation’s website : www.tax.ri.gov or call (401) 574-8829, option #3.

Line 25b -  Average Rhode Island Salaries 
Ratio - Divide line 25a in column A by line 25a 
in column B.  (Calculate ratio to four decimal 
places.) 
 
Rhode Island Apportionment Ratio 
Line 26 - Total the three ratios by adding lines 
23f, 24k and 25b. 
 
Line 27 - Apportionment Ratio:  If all three ratio 
factors were used, divide line 26 by the number 
3.  If all three ratio factors were not used, divide 
line 26 by the number of ratios used.  
(Calculate ratio to four decimal places.)  
Enter the number here on line 27 and on page 
1, Section A, line 7. 
                       
 SECTION D: MEMBER INFORMATION 
Enter the names, addresses, social security 
numbers, the amount of Rhode Island source 
income and the amount of Rhode Island tax for 
each qualified electing nonresident member.   
 
If more space is needed, attach additional 
schedules to the return.   
                       
 SIGN AND DATE THE RETURN  
An officer representing the pass-through entity 
must sign and date the return.  An unsigned 
return cannot be processed. Any paid preparer 
who prepares the return must also sign as 
“preparer.”  If a firm or corporation prepares the 
return, the return should be signed in the name 
of preparer on behalf of the firm or corporation.   
 
If you wish to allow the R.I. Division of Taxation 
to contact your paid preparer should questions 
arise regarding your return, please check the 
box below your preparer’s information.

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