Instructions For Form 8900 - Qualified Railroad Track Maintenance Credit

Use the amount of RTMC to reduce the basis of a

railroad track, and need not specify the location of any

qualifying railroad structure (including railroad track) asset

assigned mile of eligible railroad track. However, the

or intangible asset, if applicable. The reduction is limited

following information must be provided for the assignment

to the amount of QRTME capitalized for the asset. For

in the form of a statement attached to the tax return for the

further details, see Regulations section 1.45G-1(e)(2).

tax year for which the assignment is made.

The name and taxpayer identification number of each

Member of Controlled Group or

assignee.

Business Under Common Control

The total number of miles of the assignor's eligible

railroad track.

For purposes of figuring the credit, all members of a

The number of miles of eligible railroad track assigned

“controlled group of corporations” and all members of a

by the assignor for the tax year to the assignee.

“group of businesses under common control” are treated

The total number of miles of eligible railroad track

as a single taxpayer. See Regulations section 1.45G-1(f)

assigned by the assignor for the tax year to all assignees.

(2) for a definition of these terms. As a member, your

credit is determined on a proportionate basis to your

Line 3c

share of the aggregate QRTME taken into account by the

The following information must be provided for the

group for the RTMC. Enter your share of the credit on

assignment in the form of a statement attached to the tax

line 5. Attach a statement showing how your share of the

return for the tax year for which the assignment is made.

credit was figured, and write “See Attached” next to the

The total number of miles of eligible railroad track

entry space for line 5.

assigned to the assignee for the assignee's tax year.

Attestation that the assignee has in writing, and has

Specific Instructions

retained as part of the assignee's records for purposes of

Regulations section 1.6001-1(a), the following information

Line 1

from each assignor.

Qualified railroad track maintenance expenditures must

1. The name and taxpayer identification number of

be paid or incurred by an eligible taxpayer during the tax

each assignor.

year.

2. The effective date of each assignment (treated as

The payment by an eligible taxpayer, as an assignee,

being made by the assignor at the end of its tax year) to

to a Class II or Class III railroad, as an assignor, in

the assignee.

exchange for an assignment of miles of eligible railroad

3. The number of miles of eligible railroad track

track for purposes of the credit computation is treated as

assigned by each assignor to the assignee for the tax year

QRTME paid or incurred by the assignee and not the

of the assignee.

assignor.

Notes

Line 3a

The assignee cannot reassign miles.

(This line only applies to you if you are a Class II or Class

If the assignor, in its required statement (see the

III railroad.)

instructions for line 3b above), assigns more miles than it

Enter the number of eligible railroad track miles (see

has at the end of its tax year, the excess will be used to

Eligible railroad track, earlier) owned or leased by you.

reduce each assignee's allocation in the same proportion

as the assignee's original allocation of miles bears in

Line 3b

relation to the total miles originally assigned.

(This line only applies to you if you are a Class II or Class

Line 6

III railroad.)

Enter total qualified railroad track maintenance credits

You must reduce on line 3b the number of miles of

from:

eligible railroad track entered on line 3a that you assigned

Schedule K-1 (Form 1065), Partner's Share of Income,

to another eligible taxpayer for purposes of the credit

Deductions, Credits, etc., box 15 (code P); and

computation. You can only assign each mile of railroad

Schedule K-1 (Form 1120S), Shareholder's Share of

track once during your tax year. Each mile of railroad track

Income, Deductions, Credits, etc., box 13 (code P).

you assign is treated as being assigned on the last day of

your tax year.

Partnerships and S corporations must always report the

above credits on line 6. All other filers figuring a separate

An assigned mile of eligible railroad track need not

credit on earlier lines must also report the above credits

correspond to any specific mile of eligible railroad track for

on line 6. All others not using earlier lines to figure a

which the eligible taxpayer actually pays or incurs the

separate credit can report the above credits directly on

QRTME. Further, an assignment requires no transfer of

Form 3800, Part III, line 4g.

legal title or other indicia of ownership of the eligible

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Instructions for Form 8900 (2014)

Instructions For Form 8900 - Qualified Railroad Track Maintenance Credit - 2014 Page 2

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