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Sales Tax Regulations

State of Rhode Island - Division of Taxation

Sales and Use Tax

Regulation SU 87-81


Partnership Dissolution and Distribution of Assets

Where there is a dissolution of a partnership and a distribution of the assets between the partners includes a motor vehicle or vehicles, the transfer of the interest of one partner in such vehicle or vehicles to the other partner does not constitute a taxable casual sale within the meaning of the provisions of Section 44-18-20, provided the last taxable sale, transfer or use of the article being transferred or sold was subjected to a sales or use tax imposed by this state, and any gain or loss to the transferor is not recognized for federal income tax purposes.


DATE: May 1, 1987