Instructions For Form 8810 (2015) (Page 11 of 14) in pdf

Keep for Your Records

Worksheet 5—For Form 8810, Lines 5a and 5b

(b) Prior Year

(a) Current Year

Name of Activity

From Form

Unallowed Credits

(Add Columns (a)

Credits (Line 5a)

(Line 5b)

and (b))

▶

Totals. Enter on Form 8810, lines 5a and 5b . . . . . . . . . . . . . . . . . . .

unallowed loss from a PTP passive activity is

the extent of income on the form or schedule

so that the passive activity rules can be

carried forward and allowed in a tax year

normally used.

applied before any part of the credit is

when the corporation has passive income

allocated to patrons. For this purpose, Form

Part II. 2015 Passive

from the same PTP or when the corporation

3800 should be completed using only credits

disposes of its entire interest in that PTP.

that will not be allocated to patrons. Credits

Activity Credits

that are being allocated to patrons should be

Income from passive activities the

Use Form 8810, Part II, to figure the amount

picked up from the separate credit forms.

corporation holds through a PTP cannot be

of credits allowed from passive activities for

Column (b). In figuring this year's passive

used to offset losses from passive activities

the current year and the amount that is

activity credit, the corporation must take into

the corporation holds through another PTP

unallowed and carried forward.

account any credits from passive activities

or losses from any other passive activities.

disallowed for prior years and carried

Worksheet 5

PAL rules for partners in PTPs. Do not

forward to this year adjusted, if required, for

include any income, gains, deductions, or

Complete Worksheet 5 before completing

items such as recaptured credits (see

losses from PTP passive activities on Form

Part II. Use Worksheet 5 to figure the

Regulations section 1.469-3(f)). Enter in

8810. Instead, use the following rules to

amounts to enter on Form 8810, lines 5a and

Worksheet 5, column (b), the prior year

figure and report income, gains, deductions,

5b.

unallowed credits from Worksheet 6, column

and losses from passive activities held

(c), located in the 2014 Instructions for Form

Column (a). Convert any current year

through each PTP that the corporation

8810 (adjusted if required).

qualified expenditures into credits and

owned an interest in during the tax year.

For rules about prior year unallowed

complete Form 3800, General Business

1. Combine any current year income, gains,

credits from former passive activities, see

Credit, before beginning Worksheet 5. See

deductions, and losses, and prior year

section 469(f).

Cooperatives next for special instructions for

unallowed losses to see if there is an overall

certain cooperatives.

Line 7

gain or loss. Include only the same types of

Enter the credits from Form 3800, lines 2,

income and losses that would be included in

If any of the following apply, enter -0- on

23, and 32, in Worksheet 5, column (a) .

figuring net income or loss from a non-PTP

line 7 and do not complete Part I or Part II of

Enter "Form 3800, line" followed by the

passive activity (see Passive Activity Income

the Computation for Line 7 below.

appropriate line number (2, 23, or 32) in the

and Deductions, earlier).

The corporation is a personal service

“From Form” column. Separate the credits by

corporation with a loss or zero on Form

2. If there is an overall gain, the net gain

activity and by type before making entries in

8810, line 1d.

portion (total income in excess of total

the worksheet. For example, a corporation

The corporation is a personal service

deductions and losses) is nonpassive

has a distilled spirits credit from each of two

corporation with net passive income on Form

income. Report the income, deductions, and

passive activities. Enter each distilled spirits

8810, line 1d, and the corporation has an

losses on the forms and schedules normally

credit on separate lines in Worksheet 5,

overall loss from the entire disposition of a

used.

column (a). A corporation has a distilled

passive activity that is equal to or greater

spirits credit and a disabled access credit

3. If there is an overall loss (other than in a

than the net income on line 1d.

from the same passive activity. Enter the

year in which the corporation disposed of its

The corporation is a closely held

distilled spirits credit and the disabled

entire interest in the PTP), the deductions

corporation with a loss or zero on Form

access credit on separate lines in Worksheet

and losses are allowed to the extent of the

8810, line 1d, and that amount is equal to or

5, column (a).

income, and the excess deductions and

greater than the net active income on Form

losses are carried forward for use in a future

Cooperatives. A closely held cooperative

8810, line 2.

year when there is income to offset them.

that is allocating part or all of a general

The corporation is a closely held

Report the income and the loss allowed to

business credit to patrons will need to enter

corporation with net income on Form 8810,

the credits being allocated on Worksheet 5

line 3, and the corporation has an overall

Instructions for Form 8810 (2015)

-11-

Instructions For Form 8810 (2015) Page 11

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