R.I. Gen. Laws § 44-14-14 — Write-downs or reserves for security losses

Whenever any taxpayer by requirement of regulatory authorities having supervision
over it, shall write down any of its securities or establish reserves for the decrease
in values of any of its securities, the taxpayer may elect to treat the amount of
the write-downs or reserves as deductions in the year in which they are recorded on
its books and records as allocated to any security or group of securities, in which
event the basis of the securities shall be adjusted to reflect the write-downs or
reserves specifically allocated to any security, and the adjusted basis shall be used
in determining gains or losses upon the sale or other disposition of the securities.