Rhode Island income of a nonresident individual

# (a)

General. The Rhode Island income of a nonresident individual shall be the sum of the following:

# (1)

The net amount of items of income and deduction entering into his or her federal adjusted gross income derived from or connected with Rhode Island sources, including:

(i) His or her distributive share of partnership income and deductions, determined under § 44-30-34; and

(ii) His or her share of estate or trust income and deductions, determined under § 44-30-36; and

# (2)

The portion of the modifications described in subsections (b) and (c) of § 44-30-12 which relate to income derived from Rhode Island sources, including any modifications attributable to the individual as a partner.

# (3)

The portion of the modifications described in § 44-30-12(b) and (c) which relate to the tuition savings plan program referred to in § 16-57-6.1.

# (b)

Income and deductions from Rhode Island sources.

# (1)

Items of income and deduction derived from or connected with Rhode Island sources shall be those items attributable to:

(i) The ownership or disposition of any interest in real or tangible personal property in this state; or

(ii) A business, trade, profession, or occupation carried on in this state;

(iii) Gambling winnings from the state lottery and gambling winnings from pari-mutuel betting events conducted or operated by a licensee within this state.

# (2)

Income from intangible personal property, including annuities, dividends, interest, and gains from the disposition of intangible personal property, shall constitute income derived from Rhode Island sources only to the extent that the intangible personal property is employed in a business, trade, profession, or occupation carried on in this state.

# (3)

Deductions with respect to capital losses, net long-term capital gains, and net operating losses shall be based solely on income and deductions derived from or connected with Rhode Island sources, under regulations of the tax administrator, but otherwise shall be determined in the same manner as the corresponding federal deductions.

# (c)

Income and deductions partly from Rhode Island sources. If a business, trade, profession, or occupation is carried on partly within and partly without this state, the items of income and deduction derived from or connected with Rhode Island sources shall be determined by apportionment and allocation under regulations to be promulgated by the tax administrator.

# (d)

Military pay. Compensation paid by the United States for service in the armed forces of the United States, performed by an individual not domiciled in this state, shall not constitute income derived from Rhode Island sources.