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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                A separate schedule of depreciation must 
                                                   have both of those required items already, be          be kept for Rhode Island purposes.  The gain 
Form RI-1040C is used to report the Rhode          sure to timely create your portal account              or loss on the sale or other disposition of the 
Island source income of qualified electing non-    and/or request a PIN number so that you are            asset is to be determined, for Rhode Island 
resident members of LLCs, Sub S                    set                                                    purposes, using the Rhode Island depreciation 
Corporations, Partnerships, and Trusts.            up and ready to file your return and/or remit          schedule. 
                                                   your payment by the due date.  You do not               
If a pass-through entity is doing business in      need a portal account to request a PIN num-                   For  further  information  regarding  bonus 
Rhode Island, or has income, gain, loss, or        ber.                                                   depreciation or section 179  depreciation refer 
deduction derived from or connected with                                                                  to the General Instructions of Form RI-
sources within Rhode Island, it can file a com-    YOU MAY BE SUBJECT TO A PENALTY                        1040NR, Rhode Island Nonresident Income 
posite return on behalf of those qualified elect-  FOR FAILURE TO FILE RETURNS AND/OR                     Tax return. 
ing nonresident members.  All of the qualified     REMIT PAYMENTS VIA ELECTRONIC                           
electing nonresident members must have the         MEANS.                                                 Line 2c - Enter the taxable portion of the 
same taxable year.                                                                                        Paycheck Protection Program Loan amount 
                                                   If you are not required to file and pay via elec-      under R.I. Gen.§ Laws   44-30-12(b)(8). 
In order to be included in the composite filing,   tronic means, use the following address to              
the nonresident member must complete a             send in your return, attachments and pay-              Line 2d - Enter any other modifications          
Form RI 1040C-NE and file it with the entity       ments:                                                 increasing Federal  Taxable Income and pro-
from which they are receiving the Rhode                                                                   vide an explanation for the modification. 
Island source income.  The entity must keep                 R.I. Division of Taxation                      
all of these election forms on file and be able             One Capitol Hill                              Line 3 - Total Modifications Increasing Federal 
to furnish them to the Rhode Island Division of             Providence, RI 02908-5806                     Taxable Income: Add lines 2a, 2b, 2c and 2d. 
Taxation upon request.                                                                                     
                                                                                                          Line 4 - Modifications  Decreasing Federal 
DUE DATE: RI-1040C is due on the fifteenth              SPECIFIC INSTRUCTIONS                             Taxable Income 
day of the third month following the close of                                                              
the taxable year of the pass-through entity.   Complete the top of the return by filling in the           Line 4a - Enter any income from obligations of 
(March 15, 2024  for calendar year taxpayers).    name, address and federal employer identifi-            the United States Government to the extent 
                                                   cation number.   Also, check off the entity’s          that it is included in income for federal tax pur-
                                                   year end.  If not a calendar year end, indicate        poses but exempt for state purposes. 
   ELECTRONIC MANDATE                              the beginning and end dates of the entity’s fis-        
                                                   cal year.  Only entities with a fiscal year begin-     Line 4b - Enter Bonus Depreciation and  
The Rhode Island Division of Taxation has an       ning in 2023 may use this form.                        Section 179 Depreciation that has not been 
electronic mandate that requires Larger                                                                   taken for federal purposes because the depre-
Business Registrants use electronic means to       Check the “Amended” box if filing an amended           ciation was not taken originally. 
file returns and remit taxes beginning on          2023 RI-1040C.                                          
January 1, 2023.                                                                                                 Since a bill was passed disallowing feder-
                                                                                                          al bonus depreciation for Rhode Island pur-
A "larger business registrant" is defined as any    SECTION A: COMPUTATION OF INCOME                      poses, in the first year any bonus depreciation 
person who:                                        DRAFT                                                  taken for federal purposes should have been 
1) Operates as a business whose combined           Line 1 - Enter your total Federal  Taxable             added back as a modification to income.  
annual liability for all taxes administered by the Income from Federal Form 1120S, line 21,               Therefore, in subsequent years, if federal 
Division of Taxation for the entity is or exceeds  Federal Form 1065, line 22 or Federal Form             depreciation is less than what previously 
$5,000; or                                         1041, line 23, and add to that any separately          would have been allowed, the difference can 
2) Operated as a business whose annual             stated income or deductions listed on your             be deducted as a modification to income. 
gross income is over $100,000 for the entity.      Federal K-1.                                            
                                                                                                                 Since  a  bill  was  passed  disallowing  the 
If you meet either of the above criteria you are   Line 2 - Modifications   Increasing Federal            increase in the section 179 depreciation under 
required to file returns and remit taxes elec-     Taxable Income                                         the Jobs and Growth Tax Relief Reconciliation 
tronically.                                                                                               Act of 2003, section 179 depreciation will 
                                                   Line 2a - Enter any income from obligations of         remain limited to $25,000 for Rhode Island 
Visit the RI Division of Taxation’s website for    any state or its political subdivisions, other 09/07/2023purposes.  Therefore, in the first year any addi-
additional information.                            than Rhode Island.                                     tional section 179 depreciation taken for feder-
                                                                                                          al purposes should have been added back as 
Taxation website:                                  Line 2b - Enter Bonus Depreciation that must           a modification to income.  Accordingly, in sub-
https://tax.ri.gov/online-services/tax-portal      be added back to Rhode Island income.                  sequent years, if federal depreciation is less 
                                                                                                          than what previously would have been 
Taxation’s portal website:                                Due  to  the  passage  of  a  bill  disallowing allowed, the difference can be deducted as a 
https://taxportal.ri.gov/                          federal bonus depreciation for Rhode Island            modification to income. 
                                                   purposes, any bonus depreciation taken for                    A separate schedule of depreciation must 
In order to file your return and/or remit your     federal purposes must be added back as a               be kept for Rhode Island purposes.  The gain 
payment through the portal, you will need a        modification to income.                                or loss on the sale or other disposition of the 
                                                                                                          asset is to be determined, for Rhode Island 

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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.

purposes, using the Rhode Island depreciation Line 15 - Other payments: If an extension was Line 23e - Total the Net Book Value items -
schedule. filed, enter the amount paid with the extension Add lines 23a, 23b, 23c and 23d.
and attach the extension form, Form RI-
For further information regarding bonus 4868C, to your return. Line 23f - Average Rhode Island Net Book
depreciation or section 179 depreciation refer Value Ratio - divide line 23e in column A by
to the General Instructions of Form RI- Line 16 - Total Payments: Add lines 12, 13, 14 line 23e in column B (Calculate ratio to four
1040NR, Rhode Island Nonresident Income and 15. decimal places.)
Tax return.
Line 17 - Amount due: If line 11 is larger than Receipts
Line 4c - Enter any other modifications line 16, subtract line 16 from line 11. This is Line 24a - Enter the Rhode Island amount for
decreasing Federal Taxable Income and pro- the amount of tax you owe. sales under R.I.G.L. 44-11-14(a)(2)(i)(B), the
vide an explanation for the modification. amount for all other Rhode Island sales and
Line 18 - Underestimating interest due. the Total amount for . Gross Receipts
Line 5 - Total Modifications Decreasing
Federal Taxable Income: Add lines 4a, 4b and 4c. Line 19 - Total amount due: Add the tax due Due to the passage of R.I.G.L. 44-11-
from line 17 to the underestimating interest 14(a)(2)(i)(B), gross sales of tangible per-
Line 6 - Modified Federal Taxable Income: due from line 18. This is the total amount due. sonal property where shipments are made
Add line 1 to line 3 and then subtract line 5. Complete payment voucher RI-1040C-V and from an office, store, warehouse, factory or
(Line 1 + line 3 - line 5) send in with return and payment made to R.I. other place of storage in this state and the
Division of Taxation. taxpayer is not taxed in the state of pur-
Line 7 - Rhode Island apportionment ratio: If chase must now be included in the
the entity operates solely in Rhode Island, Line 20 - Overpayment: If line 11 is smaller Receipts section of the Rhode Island
enter 1.0000. If it is a multistate entity, enter than line 16, subtract line 11 from line 16. This apportionment column. This gross
computed ratio from line 27 of apportionment is your overpayment amount. receipts amount will be listed separately on
worksheet located on page 2, Section C. the apportionment schedule from the
(Calculate ratio to four decimal places.) If there is an amount due on line 18 for under- amount of all other Rhode Island sales.
estimating interest, subtract line 18 from line 20.
Line 8 - Rhode Island Source Income: Multiply Line 24b - Enter the Rhode Island and the
your Modified Federal Taxable Income (line 6) If the amount of underestimating interest from Total amounts forDividends.
by the apportionment ratio (line 7). line 18 is more than the amount of overpay-
ment from line 20, subtract line 20 from line 18 Line 24c - Enter the Rhode Island and the
and enter the result on line 19. Total amounts for . Interest
SECTION B: COMPUTATION OF TAX
Line 21 - Enter the amount of the overpay- Line 24d - Enter the Rhode Island and the
Line 9 - Calculate the Rhode Island income ment from line 20 that you would like refunded. Total amounts for . Rents
tax using the Rhode Island Composite Income
Tax rate of 5.99% (0.0599). Line 22 - Enter the amount of the overpay- Line 24e - Enter the Rhode Island and the
ment from line 20 that you would like applied Total amounts for . Royalties
Line 10 - Qualified electing nonresident mem- to your 2024 RI-1040C estimated tax.
bers’ percentage of ownership. If all members Line 24f - Enter the Rhode Island and the
are nonresidents, enter 1.0000. (Calculate DRAFTTotal amountsNet for Capital.Gains
ratio to four decimal places.) SECTION C: APPORTIONMENT
In the apportionment section, you will be using Line 24g - Enter the Rhode Island and the
Line 11 - Rhode Island Tax of the qualified a three factor formula to determine the Rhode Total amounts for . Ordinary Income
electing nonresident members: Multiply Rhode Island apportionment ratio for the qualified
Island Income Tax (line 9) by the qualified electing nonresident members. Line 24h - Enter the Rhode Island and the
electing nonresident members’ percentage of Total amounts for . Other Income
ownership (line 10). In column A, enter the Rhode Island portion of
each item. In column B, enter the Total (from Line 24i - Enter the Rhode Island and the
Line 12 - Rhode Island estimated payments everywhere) amount of each item. Total amounts for Income Exempt from
made on RI-1040C-ES and amount applied Federal Taxation.
from 2022 composite return. Average Net Book Value
Line09/07/202323aEnter- the Rhode Island and the Line 24j - Total the Receipts items - Add lines
Line 13 - Enter any nonresident real estate Total amounts for . Inventory 24a, 24b, 24c, 24d, 24e, 24f, 24g, 24h and 24i.
withholding paid on behalf of the qualified
electing nonresident members. Line 23b - Enter the Rhode Island and the Line 24k - Average Rhode Island Receipts
Total amounts for Depreciable Assets . Ratio - Divide line 24j in column A by line 24j in
Line 14 - Enter any Rhode Island nonresident column B. (Calculate ratio to four decimal
withholding from pass-through entities from Line 23c - Enter the Rhode Island and the places.)
Form RI K-1, Schedule IV, line 2 that was Total amounts for . Land
made on behalf of entity members before Salaries
electing to be included on the composite Line 23d - Enter the Rhode Island and the Line 25a - Enter the Rhode Island and the
return. Be sure to attach the Form(s) RI K-1 to Total amountsRent for (8 times the annual net Total amounts for Salaries and Wages paid or
the composite filing. rental rate). incurred.

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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.
                                                     DRAFT 

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