Form 8900
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Form 8900: Qualified Railroad Track Maintenance Credit

Eligible taxpayers can now claim the Railroad Track Maintenance Credit (RTMC) for Qualified Railroad Track Maintenance Expenditures (QRTME), which have been retroactively extended to cover qualified railroad track maintenance expenditures for tax years between 2018-2022. Find out how to file the Form 8900 and what terms to look out for to get the RTMC.

What is Form 8900?

Form 8900 is an IRS form used to claim the Railroad Track Maintenance Credit for Qualified Railroad Track Maintenance Expenditures paid or incurred. Eligible taxpayers include any Class II or Class III railroad, persons who use or provide services with the rail facilities of a Class II or Class III railroad, and (in some cases) Class I railroads. Adjustments to the basis may be necessary for certain QRTME. Members of a controlled group or business under common control are treated as a single taxpayer and must enter their share of the credit on line 5.

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IRS Form 8900 – Who Needs to Fill It Out?

IRS Form 8900 must be filled out by eligible taxpayers including Class II or Class III railroads, persons who transport property using their rails, and persons who provide services or property to these railroads. Partnerships and S corporations must also file the form and other taxpayers may claim the credit directly on Form 3800. Understanding the definitions of eligible taxpayers, rail facilities, railroad-related property, railroad-related services, eligible railroad track, qualifying railroad structure, and qualified railroad track maintenance expenditures is necessary for completion of Form 8900. Additionally, members of a controlled group or business under common control must adjust the basis of their credit according to Regulations section 1.45G-1(e)(2).

Step-by-Step: Form 8900 Instructions For Filling Out the Document

To claim the railroad track maintenance credit, eligible taxpayers must complete Form 8900 and provide all relevant details for QRTME, credit extension, periodic updates, members of a controlled group, and adjusting basis. Instructions detail required information for assignors, partnerships, S corporations, and other taxpayers, as well as definitions of eligible taxpayers, rail facilities, railroad-related property, services, eligible railroad track, and qualifying railroad structure. All members of a “controlled group” or “group of businesses under common control” are treated as a single taxpayer and are subject to adjust the basis of the qualified railroad track maintenance expenditure by the credit according to section 1.45G-1(e)(2). Be sure to attach a statement showing how your share of the credit was figured. Visit IRS.gov/Form8900 for the latest developments.

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Below, we present a table that will help you understand how to fill out Form 8900.

Form 8900 Instructions
Step-by-Step: Form 8900 Instructions For Filling Out the Document
  • To claim the railroad track maintenance credit, eligible taxpayers must complete Form 8900 and provide all relevant details for QRTME, credit extension, periodic updates, members of a controlled group, and adjusting basis.
  • Understand the definitions and requirements for eligible taxpayers, rail facilities, and other related terms.
  • Be aware of the treatment of controlled groups as a single taxpayer.
  • Attach a statement showing how your share of the credit was figured if necessary.
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Do You Need to File Form 8900 Each Year?

Form 8900 and its instructions must be used for tax years beginning after 2017. All eligible taxpayers, including partnerships and S corporations, must use the form to claim the Railroad Track Maintenance Credit. Class I railroads, Class II and Class III railroads, and those transporting property and providing services to Class railroads may need to file Form 8900 annually, even if they do not claim a credit within it. Be sure to check IRS.gov/Form8900 for any related developments.

Download the official IRS Form 8900 PDF

On the official IRS website, you will find a link to download Form 8900. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 8900

Sources:

https://www.irs.gov/forms-pubs/about-form-8900

https://www.irs.gov/instructions/i8900

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