Rhode Island General Laws Title 44. Taxation § 44-30-54. Change of resident status during year

(1) If an individual changes his or her status from resident to nonresident, the individual shall, regardless of his or her method of accounting, accrue for the portion of the taxable year prior to the change of status any items of income or deduction accruing prior to the change of status, if not otherwise properly includible, whether or not because of an election to report on an installment basis, or allowable for Rhode Island income tax purposes for that portion of the taxable year or for a prior taxable year. The amounts of the accrued items shall be determined with the applicable modifications described in § 44-30-12 as if the accrued items were includible or allowable for federal income tax purposes.

(2) If an individual changes his or her status from nonresident to resident, the individual shall, regardless of his or her method of accounting, accrue for the portion of the taxable year prior to the change of status any items of income or deduction accruing prior to the change of status, other than derived from or connected with Rhode Island sources, if not otherwise properly includible (whether or not because of an election to report on an installment basis) or allowable for federal income tax purposes for that portion of the taxable year or a prior taxable year. The amounts of the accrued items shall be determined with the applicable modifications described in § 44-30-12 as if the accrued items were includible or allowable for federal income tax purposes.

(3) No item of income or deduction, which is accrued under this subsection, shall be taken into account in determining Rhode Island income or Rhode Island deductions for any subsequent taxable period.

(4) The accruals under this subsection shall not be required if the individual files with the tax administrator a bond or other security acceptable to the tax administrator, conditioned upon the inclusion of amounts accruable under this subsection in Rhode Island income for one or more subsequent taxable years as if the individual had not changed his or her resident status.