Instructions For Form 8810 - 2016 Page 7
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13Corporation Income Tax Return, and any
Worksheet 1—Computation of Income,
losses from Form 4797 or Form 8949 (and
Schedule D (Form 1120), as applicable) on
Gains, Deductions, and Losses for
that form, if applicable, including any prior
Worksheet 2
Keep for Your Records
year unallowed losses that are properly
entered on those forms.
If the prior year unallowed losses include
Name of Activity:
Name of Activity:
deductions that would have been reported
on Form 1120, page 1, instead of on Form
4797 or Form 8949 (and Schedule D (Form
1.
Gross receipts . . . . . . . . . . . .
1120), as applicable), include the prior year
2.
Schedule D and Form 8949 gains
unallowed losses on the appropriate line
(see inst.) . . . . . . . . . . . . . . .
along with any current year deduction or loss
3.
Form 4797 gains
. . . . . . . . . .
from that line.
4.
Other passive income . . . . . . .
Example. The corporation had $1,000 of
deductions for current year repairs and
5.
Total income. Add lines 1 through
maintenance and $500 of deductions for
▶
4. Enter the result here and in
prior year unallowed repairs and
Worksheet 2, column (a)
. . . . .
maintenance. Enter $1,500 as the deduction
6.
Deductions:
. . . . . . . . . . . .
for repairs and maintenance allowed from
a.
Cost of goods sold . . . . . . . . .
passive activities on the proper line.
b. Compensation of officers . . . . .
Line 2. Closely Held
Corporations
c.
Salaries and wages
. . . . . . . .
d. Repairs and
Closely held corporations can offset the loss,
maintenance . . . . . . . . . . . . .
if any, on line 1d with net active income. Net
active income is the corporation's taxable
e.
Bad debts
. . . . . . . . . . . . . .
income for the tax year, determined without
f.
Rents . . . . . . . . . . . . . . . . .
regard to the following items.
g. Taxes and licenses . . . . . . . . .
Net passive income or loss.
Portfolio income. See Passive Activity
h. Interest . . . . . . . . . . . . . . . .
Income, earlier.
i.
Depreciation . . . . . . . . . . . . .
Deductions attributable to portfolio
income described in Temporary Regulations
j.
Depletion . . . . . . . . . . . . . . .
section 1.469-2T(d)(2)(i), (ii), and (iv).
k.
Advertising . . . . . . . . . . . . . .
Interest expense allocated under
l.
Other deductions . . . . . . . . . .
Temporary Regulations section 1.163-8T to
a portfolio expenditure (within the meaning of
7.
Total deductions. Add lines 6a
Temporary Regulations section 1.163-8T(b)
through 6l
. . . . . . . . . . . . . .
(6)).
8.
Schedule D and Form 8949 losses
Gain on the disposition of substantially
(see inst.) . . . . . . . . . . . . . . .
appreciated property formerly held for
9.
Form 4797 losses . . . . . . . . . .
investment. See Regulations section
1.469-2(c)(2)(iii)(F).
10. Total deductions and losses.
Gross income from certain oil or gas
Add lines 7 through 9. Enter the
▶
properties treated under Regulations section
result here and in Worksheet 2,
1.469-2(c)(6) as not from a passive activity.
column (b) . . . . . . . . . . . . . .
Gross income and deductions from any
trade or business activity of trading certain
personal property described in Temporary
loss), figure net active income by taking into
Worksheet 1 and any prior year unallowed
Regulations section 1.469-1T(e)(6), but only
account all of the overall loss from that
losses in Worksheet 2 for those activities on
if the corporation did not materially
activity.
the appropriate lines of Form 1120 and on
participate in the activity for the tax year.
Form 8949 and Schedule D (Form 1120), as
Line 4. Total Deductions and
If the corporation disposed of its entire
applicable, or Form 4797, as applicable.
interest in a passive activity to an unrelated
Losses Allowed
party in a fully taxable transaction, figure net
Overall loss. A corporation uses
Worksheet 2, columns (d) and (e), show
active income by taking into account an
Worksheets 3 and 4 for activities that show
whether an activity had an overall gain or
overall loss from that activity only to the
an overall loss in column (e). Use Worksheet
loss.
extent it exceeds overall gain from all other
3 to figure the unallowed deductions and
passive activities (the gain, if any, shown on
losses to be carried forward to Worksheet 4.
Overall gain. A corporation with an overall
Form 8810, line 1d).
Use Worksheet 4 to figure the allowed
gain in Worksheet 2, column (d), will report
deductions and losses to report on the forms
If there is an overall loss from all other
all of the deductions and losses listed in
and schedules for 2016.
passive activities (Form 8810, line 1d, is a
Instructions for Form 8810 (2016)
-7-
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