Instructions For Form 8810 (2015) Page 7
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14Part I. 2015
Worksheet 1—Computation of Income,
Passive Activity Loss
Gains, Deductions, and Losses for
Lines 1d and 3
Keep for Your Records
Worksheet 2
If line 1d or 3 shows net income or zero, all
the deductions and losses are allowed
including any prior year unallowed losses
Name of Activity:
Name of Activity:
entered on line 1c. Enter the deductions on
the appropriate lines of Form 1120, U.S.
1.
Gross receipts . . . . . . . . . . . .
Corporation Income Tax Return, and any
losses from Form 4797 or Form 8949 (and
2.
Schedule D and Form 8949 gains
(see inst.) . . . . . . . . . . . . . . .
Schedule D (Form 1120), as applicable) on
that form, if applicable, including any prior
3.
Form 4797 gains
. . . . . . . . . .
year unallowed losses that are properly
4.
Other passive income . . . . . . .
entered on those forms.
5.
Total income. Add lines 1 through
If the prior year unallowed losses include
▶
4. Enter the result here and in
deductions that would have been reported
Worksheet 2, column (a)
. . . . .
on Form 1120, page 1, instead of on Form
4797 or Form 8949 (and Schedule D (Form
6.
Deductions:
. . . . . . . . . . . .
1120), as applicable), include the prior year
a.
Cost of goods sold . . . . . . . . .
unallowed losses on the appropriate line
b. Compensation of officers . . . . .
along with any current year deduction or loss
from that line.
c.
Salaries and wages
. . . . . . . .
d. Repairs and
Example. The corporation had $1,000 of
maintenance . . . . . . . . . . . . .
deductions for current year repairs and
maintenance and $500 of deductions for
e.
Bad debts
. . . . . . . . . . . . . .
prior year unallowed repairs and
f.
Rents . . . . . . . . . . . . . . . . .
maintenance. Enter $1,500 as the deduction
for repairs and maintenance allowed from
g. Taxes and licenses . . . . . . . . .
passive activities on the proper line.
h. Interest . . . . . . . . . . . . . . . .
Line 2. Closely Held
i.
Depreciation . . . . . . . . . . . . .
Corporations
j.
Depletion . . . . . . . . . . . . . . .
Closely held corporations can offset the loss,
k.
Advertising . . . . . . . . . . . . . .
if any, on line 1d with net active income. Net
l.
Other deductions . . . . . . . . . .
active income is the corporation's taxable
income for the tax year, determined without
7.
Total deductions. Add lines 6a
through 6l
. . . . . . . . . . . . . .
regard to the following items.
Net passive income or loss.
8.
Schedule D and Form 8949 losses
Portfolio income. See Passive Activity
(see inst.) . . . . . . . . . . . . . . .
Income, earlier.
9.
Form 4797 losses . . . . . . . . . .
Deductions attributable to portfolio income
described in Temporary Regulations section
10. Total deductions and losses.
Add lines 7 through 9. Enter the
1.469-2T(d)(2)(i), (ii), and (iv).
▶
result here and in Worksheet 2,
Interest expense allocated under
column (b) . . . . . . . . . . . . . .
Temporary Regulations section 1.163-8T to
a portfolio expenditure (within the meaning of
Temporary Regulations section 1.163-8T(b)
(6)).
active income by taking into account an
Overall gain. A corporation with an overall
Gain on the disposition of substantially
overall loss from that activity only to the
gain in Worksheet 2, column (d), will report
appreciated property formerly held for
extent it exceeds overall gain from all other
all of the deductions and losses listed in
investment. See Regulations section
passive activities (the gain, if any, shown on
Worksheet 1 and any prior year unallowed
1.469-2(c)(2)(iii)(F).
Form 8810, line 1d).
losses in Worksheet 2 for those activities on
Gross income from certain oil or gas
the appropriate lines of Form 1120 and on
properties treated under Regulations section
If there is an overall loss from all other
Form 8949 and Schedule D (Form 1120), as
passive activities (Form 8810, line 1d, is a
1.469-2(c)(6) as not from a passive activity.
applicable, or Form 4797, as applicable.
loss), figure net active income by taking into
Gross income and deductions from any
account all of the overall loss from that
trade or business activity of trading certain
Overall loss. A corporation uses
activity.
personal property described in Temporary
Worksheets 3 and 4 for activities that show
Regulations section 1.469-1T(e)(6), but only
an overall loss in column (e). Use Worksheet
Line 4. Total Deductions and
if the corporation did not materially
3 to figure the unallowed deductions and
Losses Allowed
participate in the activity for the tax year.
losses to be carried forward to Worksheet 4.
Use Worksheet 4 to figure the allowed
Worksheet 2, columns (d) and (e), show
If the corporation disposed of its entire
deductions and losses to report on the forms
whether an activity had an overall gain or
interest in a passive activity to an unrelated
and schedules for 2015.
loss.
party in a fully taxable transaction, figure net
Instructions for Form 8810 (2015)
-7-
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