Instructions For Form 8810 (2015) (Page 8 of 14) in pdf

Instructions For Form 8810 (2015) Page 8

Keep for Your Records

Worksheet 2 for Form 8810, Lines 1a, 1b, and 1c

Current Year

Prior Year

Overall Gain or Loss

Name of Activity

(a) Income

(b) Deductions and

(d) Gain

(e) Loss

(Line 1a)

Losses (Line 1b)

Losses (Line 1c)

▶

Totals. Enter on Form 8810,

lines 1a, 1b, and 1c . . . . . . . . . .

Worksheet 3—Allocation of Unallowed Deductions and Losses

Keep for Your Records

If the corporation has activities in Worksheet 2 with an overall loss in column (e), use Worksheet 3 to figure the unallowed

deductions and losses for each activity.

If any of the activities in Worksheet 2 had an overall gain in column (d), all of the deductions and losses (including prior year

unallowed losses) for that activity are allowed in full. Enter the deductions on the appropriate line of Form 1120 and enter any losses

on Form 4797, Form 8949, or Schedule D (Form 1120), as applicable.

Prior year unallowed losses from 2014. If there were prior year unallowed losses from 2014, include the prior year unallowed

losses on the appropriate line along with any current year deduction or loss for that line. See the example in the instructions for lines

1d and 3 above. Prior year unallowed losses from Form 4797 and Form 8949 should have been kept separate in 2014, and should

be identified as “prior year unallowed losses” on Form 4797 and Form 8949.

Column (a). Enter the loss from Worksheet 2, column (e).

Column (b). Divide each of the individual losses in column (a) by the total of all the losses in column (a) and enter the ratio for each

of the activities in column (b). The total of all the ratios should equal 1.00.

Column (c). Multiply the unallowed loss from Form 8810, line 3, by each of the ratios in column (b) and enter the results in

column (c).

Instructions for Form 8810 (2015)

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Instructions For Form 8810 (2015) Page 8