BONUS DEPRECIATION
A bill passed disallowing the new federal bonus depreciation
for Rhode Island
tax purposes. When filing a Rhode Island tax
return any bonus depreciation taken for federal purposes must be added back to
income as a modification on Schedule I, line 23(d) for Rhode Island purposes. In subsequent years,
when federal depreciation is less than what previously would have been allowed,
the difference may be deducted from income as a modification on Schedule I,
line 24(i) for Rhode
Island purposes.
A separate schedule of depreciation must be kept for Rhode Island purposes.
The gain or loss on the sale or other disposition of the asset is to be
determined, for Rhode Island purposes, using
the Rhode Island
depreciation schedule.
The calculation will be performed based on federal input and
will carry to either the modifications INCREASING or DECREASING federal AGI.
SECTION 179 DEPRECIATION
Rhode Island
passed a bill disallowing the increase in the section 179 depreciation under
the Jobs & Growth Tax Relief Reconciliation Act of 2003. Section 179
depreciation will remain limited to $25,000 for Rhode Island income tax purposes. When
filing your Rhode Island
tax return any additional section 179 depreciation taken must be added back to
federal adjusted gross income as a modification on Schedule I, line 23(d). In
subsequent years, when federal depreciation is less than what previously would
have been allowed, the difference may be deducted from federal adjusted income
as a modification on Schedule I, line 24(i).
A separate schedule of depreciation must be kept for Rhode Island purposes.
The gain or loss on the sale or other disposition of the asset is to be
determined, for Rhode Island purposes, using
the Rhode Island
depreciation schedule.
The difference in Section 179 expense must be entered on the
Worksheet for Line 23(d).
BONUS DEPRECIATION
A bill passed disallowing the new federal bonus depreciation
for Rhode Island
tax purposes. When filing a Rhode Island tax return any bonus depreciation
taken for federal purposes must be added back to income as a modification on
Schedule 1, line 23(d) for Rhode Island purposes. In subsequent years, when
federal depreciation is less than what previously would have been allowed, the
difference may be deducted from income as a modification on Schedule 1, line 24(i) for Rhode Island purposes.
A separate schedule of depreciation must be kept for Rhode Island purposes.
The gain or loss on the sale or other disposition of the asset is to be
determined, for Rhode Island purposes, using
the Rhode Island
depreciation schedule.
The calculation will be performed based on federal input and
will carry to either the modifications INCREASING or DECREASING federal AGI.
SECTION 179 DEPRECIATION
Rhode Island
passed a bill disallowing the increase in the section 179 depreciation under the
Jobs & Growth Tax Relief Reconciliation Act of 2003. Section 179
depreciation will remain limited to $25,000 for Rhode Island income tax purposes. When
filing your Rhode Island
tax return any additional section 179 depreciation taken must be added back to
federal adjusted gross income as a modification on Schedule I, line 23(d). In
subsequent years, when federal depreciation is less than what previously would
have been allowed, the difference may be deducted from federal adjusted income
as a modification on Schedule I, line 24(i).
A separate schedule of depreciation must be kept for Rhode Island purposes.
The gain or loss on the sale or other disposition of the asset is to be
determined, for Rhode Island purposes, using
the Rhode Island
depreciation schedule.
The difference in Section 179 expense must be entered on the
Worksheet for Line 23B.
RI Schedule D Capital Gains and Losses
This form is to be used by taxpayers reporting capital gains
or figuring their tax on Federal Form Schedule D.
RI Schedule D is for both residents and nonresidents alike.
All capital gains and loses should be reported on this schedule regardless of
where the asset was sold or located.
In general, Rhode
Island uses Federal terminology for what constitutes
a capital asset and the
holding period of the asset unless otherwise stated.
Column (g) - Qualified 5 Year Gain or Loss
Enter in column (g) any gain or loss from column (f) for any
capital asset that is held for more than 5 years. Generally, you must have
acquired the asset before January 1, 2002 and sold on or after
January 1, 2007.
Only include in column (g) the amounts of qualified 5 year
gain for ordinary long term gain. A qualified 5 year gain for a Federal Section
§1250 gain or a Federal 28% rate gain is reported elsewhere on RI Schedule D.