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Form 8902 is used by qualifying vessel operators (defined below) who are making an alternative tax election under section 1354(a) or who have made such an election previously. The form is used to make such an election or report the termination of such an election, to report information relating to such an election, and to compute the alternative tax.
Form 8902 must be filed by a qualifying vessel operator (defined below) who is making an alternative tax election under section 1354(a) or who is reporting the termination of such an election. The form must also be used by a qualifying vessel operator who has a valid election in effect to report information pertaining to that election and to compute the alternative tax.
Such vessel is owned by, or chartered (including a time charter) to, the person, or the person provides services for such vessel pursuant to an operating agreement, and
Such vessel is in use as a qualifying vessel during such period.
The vessel is (a) temporarily surplus to the person's requirements and the term of the charter does not exceed 3 years or (b) bareboat chartered to a member of a controlled group which includes such person or to an unrelated person who sub-bareboats or time charters the vessel to such a member (including the owner of the vessel) and
The vessel is used as a qualifying vessel by the person to whom ultimately chartered.
See section 1355 for more definitions and special rules that apply with respect to the above definitions.
In applying these rules to a partner in a partnership:
Each partner is treated as operating vessels operated by the partnership,
Each partner is treated as conducting the activities conducted by the partnership, and
The extent of a partner's ownership, charter, or operating agreement interest in any vessel operated by the partnership will be determined on the basis of the partner's interest in the partnership.
A similar rule applies to other pass-through entities.
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