Instructions For Form 8900 - Qualified Railroad Track Maintenance Credit - Department Of Treasury
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Form 8900 (2008)
Page
Eligible railroad track is railroad track located within the United States
The number of miles of eligible railroad track assigned by the assignor
that is owned or leased by a Class II or Class III railroad at the close of
for the tax year to the assignee.
its tax year. The railroad is treated as owning the railroad track if it is
The total number of miles of eligible railroad track assigned by the
subject to depreciation under section 167 by the railroad. Double track is
assignor for the tax year to all assignees.
treated as multiple lines of railroad track, rather than as a single line of
railroad track. That is, one mile of single track is one mile, but one mile of
Line 3c
double track is two miles.
The following information must be provided with respect to the assign-
Qualifying railroad structure is property located within the United States
ment in the form of a statement attached to the tax return for the tax year
that includes, in part, tunnels, bridges, and railroad track. For a complete
for which the assignment is made.
description, see Regulations section 1.45G-1(b)(4).
The total number of miles of eligible railroad track assigned to the
QRTME are expenditures (whether or not otherwise chargeable to a
assignee for the assignee’s tax year.
capital account) for maintaining, repairing, and improving a qualifying
railroad structure that is owned or leased as of January 1, 2005, by a
Attestation that the assignee has in writing, and has retained as part of
Class II or Class III railroad. If you paid or incurred QRTME during the tax
the assignee’s records for purposes of Regulations section 1.6001-1(a),
year, you do not have to reduce that QRTME by any amount of direct or
the following information from each assignor:
indirect reimbursement to which you are entitled from a Class II or Class
a. The name and taxpayer identification number of each assignor;
III railroad which made an assignment of eligible railroad track to you.
b. The effective date of each assignment (treated as being made by
Adjustments to Basis
the assignor at the end of its tax year) to the assignee; and
c. The number of miles of eligible railroad track assigned by each
Some or all of the QRTME paid or incurred by an eligible taxpayer may
assignor to the assignee for the tax year of the assignee.
be required to be capitalized as a tangible asset or an intangible asset, if
applicable. See Regulations section 1.45G-1(e)(1).
Notes. 1. The assignee cannot reassign miles.
2. If the assignor, in its required statement (see the instructions
Use the amount of RTMC to reduce the basis of a qualifying railroad
for line 3b above), assigns more miles than it has at the end of
structure (including railroad track) asset or intangible asset, if applicable.
its tax year, the excess will be used to reduce each assignee’s
The reduction is limited to the amount of QRTME capitalized with respect
allocation in the same proportion as the assignee’s original
to the asset. For further details, see Regulations section 1.45G-1(e)(2).
allocation of miles bears in relation to the total miles originally
assigned.
Member of Controlled Group or Business Under
Common Control
Line 8
For purposes of figuring the credit, all members of a “controlled group of
Enter the amount included on line 7 that is from a passive activity.
corporations” and all members of a “group of businesses under common
Generally, a passive activity is a trade or business in which you did not
control” are treated as a single taxpayer. See Regulations section
materially participate. Rental activities are generally considered passive
1.45G-1(f)(2) for a definition of these terms. As a member, compute your
activities, whether or not you materially participate. For details, see Form
credit based on your proportionate share of QRTME giving rise to the
8582-CR, Passive Activity Credit Limitations (for individuals, estates, and
group’s RTMC. Enter your share of the credit on line 5. Attach a
trusts), or Form 8810, Corporate Passive Activity Loss and Credit Limita-
statement showing how your share of the credit was figured, and write
tions (for corporations).
“See Attached” next to the entry space for line 5.
Line 10
Specific Instructions
Enter the passive activity qualified railroad track maintenance credit
allowed for 2008 from Form 8582-CR or Form 8810.
Figure the current year credit from your trade or business on lines 1
through 5. Skip lines 1 through 5 if you are only claiming a credit that
Line 11
was allocated to you from an S corporation or partnership.
Enter any carryback if you amend your 2008 return to carry back an
Line 1
unused qualified railroad track maintenance credit from 2009. Report any
carryback of the credit from 2008 to 2007 on the 2007 Form 6478, Credit
Qualified railroad track maintenance expenditures must be paid or
for Alcohol Used as Fuel, line 10, and enter “RR” to the left of the entry
incurred by an eligible taxpayer during the tax year.
space. Report any carryforward of the credit from 2007 to 2008 on Form
3800, line 6.
The payment by an eligible taxpayer, as an assignee, to a Class II or
Class III railroad, as an assignor, in exchange for an assignment of miles
of eligible railroad track for purposes of the credit computation is treated
Paperwork Reduction Act Notice. We ask for the information on this
as QRTME paid or incurred by the assignee and not the assignor.
form to carry out the Internal Revenue laws of the United States. You are
required to give us the information. We need it to ensure that you are
Line 3a (This line only applies to you if you are a Class II or Class III
complying with these laws and to allow us to figure and collect the right
railroad.)
amount of tax.
Enter the number of eligible railroad track miles (see Eligible railroad
You are not required to provide the information requested on a form
track above) owned or leased by you.
that is subject to the Paperwork Reduction Act unless the form displays a
Line 3b (This line only applies to you if you are a Class II or Class III
valid OMB control number. Books or records relating to a form or its
railroad.)
instructions must be retained as long as their contents may become
material in the administration of any Internal Revenue law. Generally, tax
You must reduce on line 3b the number of miles of eligible railroad track
returns and return information are confidential, as required by section
entered on line 3a that you assigned to another eligible taxpayer for
6103.
purposes of the credit computation. You can only assign each mile of
railroad track once during your tax year. Each mile of railroad track that
The time needed to complete and file this form will vary depending on
you assign is treated as being assigned on the last day of your tax year.
individual circumstances. The estimated burden for individual taxpayers
filing this form is approved under OMB control number 1545-0074 and is
An assigned mile of eligible railroad track need not correspond to any
included in the estimates shown in the instructions for their individual
specific mile of eligible railroad track with respect to which the eligible
income tax return. The estimated burden for all other taxpayers who file
taxpayer actually pays or incurs the QRTME. Further, an assignment
this form is shown below.
requires no transfer of legal title or other indicia of ownership of the
eligible railroad track, and need not specify the location of any assigned
Recordkeeping
4 hr., 4 min.
mile of eligible railroad track. However, the following information must be
Learning about the law or the form
53 min.
provided with respect to the assignment in the form of a statement
Preparing, copying, assembling, and
attached to the tax return for the tax year for which the assignment is
sending the form to the IRS
1 hr.
made.
If you have comments concerning the accuracy of these time
The name and taxpayer identification number of each assignee.
estimates or suggestions for making this form simpler, we would be
The total number of miles of the assignor’s eligible railroad track.
happy to hear from you. See the instructions for the tax return with which
this form is filed.
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