Instructions For Form 8810 (2015) (Page 12 of 14) in pdf

Worksheet 6—Allowed and Unallowed Credits

Keep for Your Records

Use Worksheet 6 to allocate the allowed and unallowed credits for each activity.

Column (a). Enter the total credits from Worksheet 5, column (c).

Column (b). Divide each of the credits in column (a) by the total of all credits in column (a). The total of the ratios should equal 1.00.

Column (c). Multiply Form 8810, line 8, by the ratios in column (b) and enter the results in column (c). These are the unallowed credits for 2015.

Keep a record of these amounts, so the credits can be carried to the next year.

Column (d). Subtract column (c) from column (a). These are the allowed credits for 2015. The amounts in this column are generally reported on

Form 3800. See Reporting Allowed Credits on Tax Return, below.

Form To Be

Name of Activity

(a) Credits

(b) Ratio

(d) Allowed Credits

Reported On

Credits

▶

Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.00

loss from an entire disposition that is equal to

Part II. Tax Attributable to Net

Computation for Line 7, Part I. This part is

or greater than the net income on line 3.

used by personal service corporations and

Active Income

closely held corporations with net passive

Computation for Line 7

income.

G. Enter amount from line E if Part I is

Part I. Tax Attributable to Net

completed. Otherwise, enter income

Computation for Line 7, Part II. This part

Passive Income

tax before credits from Form 1120

is used by closely held corporations that

(Schedule J, line 2)

. . . . . . . . .

have net active income. See the instructions

H. Taxable income from Form

for line 2, earlier, for the definition of net

A. Income tax before credits from Form

1120

. . . . . . . . . . . . .

active income. If the corporation has both net

1120 (Schedule J, line 2)

. . . . . .

I. Net active income

. . . . . .

passive income and net active income,

B. Taxable income from Form

J. Net passive income or loss.

1120

complete Part I and Part II and enter the

. . . . . . . . . . . . .

See instructions for line

C. Net passive income. See

amount from line Q on Form 8810, line 7.

. . . . . . . . . . . . . . .

instructions for line C

. . . .

K. Combine lines I and J. If less

D. Subtract line C from line B. If

Note. When using taxable income in the

than zero, enter as a negative

zero or less, enter -0- here and

computation for line 7, it is not necessary to

amount

. . . . . . . . . . . .

on line E

. . . . . . . . . . .

refigure items based on taxable income,

L. Subtract line K from line H. If

E. Tax attributable to line D. Figure the

such as the contributions deduction,

zero or less, enter -0- here and

tax on the line D amount as if it were

dividends-received deduction, and the net

on line M

. . . . . . . . . . .

the corporation's only taxable

operating loss deduction.

M. Tax attributable to line L. Figure the

income

. . . . . . . . . . . . . . . .

tax on the line L amount as if it were

F. Tax attributable to net passive

Use the applicable tax rates in section 11

the corporation's only taxable

income. Subtract line E from line A.

when figuring the tax attributable amounts.

income

. . . . . . . . . . . . . . . .

Closely held corporations that do not

Also, see how to figure tax in the instructions

N. Subtract line M from line G. If zero or

have net active income and personal

for the tax return filed.

less, enter -0- here and on line

service corporations enter the amount

Line C. Enter the net income, if any, from

. . . . . . . . . . . . . . . . . . .

here and on Form 8810, line 7

. . .

O. Enter the corporation's nonpassive

Form 8810, line 1d. If the corporation has an

credits without regard to the tax

overall loss from the entire disposition of a

liability limitations

. . . . . . . . . .

passive activity, the amount to enter on line

P. Tax attributable to net active income.

C is the net income from line 1d reduced by

Subtract line O from line N

. . . . .

the overall loss, but not below zero. If the

Q. Tax attributable to net passive

result is zero, skip the rest of the Part I

income and net active income. Add

computation.

lines F and P. Enter the result here

and on Form 8810, line 7

. . . . . .

Line J. If the corporation has net passive

income, enter the amount from line C on this

line. If the corporation has a net loss from

Instructions for Form 8810 (2015)

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Instructions For Form 8810 (2015) Page 12

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