Federal Alternative Tax on Qualifying Shipping Activities

Alternative Tax on Qualifying Shipping Activities
Form 8902 (Rev. April 2018)
Form

8902

Alternative Tax on Qualifying Shipping Activities
OMB No. 1545-0123

(Rev. April 2018)
▶ Attach to the corporation’s income tax return.
Department of the Treasury
▶ Go to www.irs.gov/Form8902 for instructions and the latest information.
Internal Revenue Service
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.

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(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 .

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Yes

No

Yes

No

F If the answer to item E is “Yes”:

(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:
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(a) Amount included in the 0.1% limit .

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(b) Amount that exceeds the 0.1% limit

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(1) Core qualifying activities

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

(b) Amount that exceeds the 20% limit
(3) Qualifying incidental activities:

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 (Rev. 4-2018)

Page 2

Form 8902 (Rev. 4-2018)

Part III
1
2
3
4
5
6
7
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11

Vessel Information

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

A
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Yes
No

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

B

Yes
No
%

19
20
21
22

D

Yes
No

Yes
No

%

%

%

Notional Shipping Income
A

12
13
14
15
16
17
18

C

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 . . . . .
Daily notional shipping income.
Add lines 15 and 17 . . . . . .
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
. . . .

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
24
25
26
27
28

B

C

D

Gross income excluded under section
883 or otherwise . . . . . . .
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 . . . . . .

Part V

Alternative Tax

29

Total annual notional shipping income (enter the sum of all columns of Part IV, line 28)

30

Alternative tax on qualifying shipping activities. Multiply line 29 by the highest rate of tax specified in
section 11 (see instructions). 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 . . . . . . . . . .

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Form 8902 (Rev. 4-2018)