Form 8902 Form 8902 Alternative Tax on Qualifying Shipping Activities

Form

8902

Alternative Tax on Qualifying Shipping Activities

(December 2007)

OMB No. 1545-1968
©

Department of the Treasury
Internal Revenue Service

Attach to the corporation’s income tax return.
©

See separate instructions.

Name of corporation (common parent, if consolidated return)

Employer identification number

Name of subsidiary (if consolidated return)

Employer identification number

Part I

Section 1354 Election or Termination

A The corporation previously made a valid and timely section 1354 election effective for the tax year
beginning
, 20
, and ending
, 20
.
B The corporation is making a section 1354 election for this tax year and all succeeding tax years.
C The corporation is revoking its election under section 1354(d)(1) for its tax year beginning
, 20
, and ending
, 20
.
D The corporation’s election was automatically terminated under section 1354(d)(2) because the corporation ceased to be a
qualifying vessel operator effective
, 20
.

Part II

Other Information (see instructions)

E Is the corporation a member of an electing group?
If “No,” skip item F and go to item G.

Yes

No

Yes

No

F If the answer to item E is “Yes”:
(1) How many corporations are in the electing group?

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(2) Enter the number of vessels included under the election for the electing group

©

(3) Does any member of the electing group have income from qualifying secondary activities or
qualifying incidental activities?
If “Yes,” attach to Form 8902 a worksheet that provides the information requested in item G for
each such member of the electing group.
G Enter the corporation’s gross income from:
(1) Core qualifying activities

$

(2) Qualifying secondary activities:
(a) Amount included in 20% limit

$

(b) Amount that exceeds the 20% limit

$

(3) Qualifying incidental activities:
(a) Amount included in the 0.1% limit

$

(b) Amount that exceeds the 0.1% limit

$

H Gross income from qualifying shipping activities excluded from gross income on the
corporation’s income tax return. Add lines G(1), G(2)(a), and G(3)(a)
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 37711U

$
Form

8902

(12-2007)

Form 8902 (12-2007)

Part III
1
2
3
4
5
6
7

Vessel name
IMO number
USCG VIN number
Flag
Date flagged
Vessel type
Vessel used in U.S. foreign trade?

8

Percentage of U.S. ownership in the
vessel
Type of ownership (see instructions)
Type of vessel use (see instructions)
Date placed in service

Part IV

A

B

C

D

Yes
No

Yes
No

Yes
No

Yes
No

%

%

%

%

Notional Shipping Income
A

12
13
14
15
16
17

Dead weight tons
Net tons
Enter the smaller of line 13 or 25,000
Multiply line 14 by 0.004
Subtract line 14 from line 13
Multiply line 16 by 0.002

18

Daily notional shipping income.
Add lines 15 and 17

19

Days operated in U.S. foreign trade
during the tax year
Multiply line 18 by line 19
Ownership percentage
Multiply line 20 by line 21

20
21
22

2

Vessel Information
Description

9
10
11

Page

B

%

C

%

D

%

%

If any income from this vessel was excluded from gross income by reason of section 883 or otherwise, complete lines 23
through 27. Otherwise, skip lines 23 through 27 and enter the amount from line 22 on line 28.
A
23

Gross income excluded under section
883 or otherwise

24

Gross income from operation of
vessel in U.S. foreign trade
Add lines 23 and 24
Divide line 24 by line 25
Multiply line 22 by line 26
Annual notional shipping income.
Enter the amount from line 22 or line
27, whichever applies

25
26
27
28

Part V
29
30

B

C

D

Alternative Tax

Total annual notional shipping income (enter the sum of all columns of Part IV, line 28)
Alternative tax on qualifying shipping activities. Multiply line 29 by 35%. Enter here and on the
“Other taxes” line of Form 1120, Schedule J, or Form 1120-F, Schedule J. Be sure to check the box
for Form 8902

$

$
Form

8902

(12-2007)