Instructions For Form 8810 - 2016 (Page 8 of 13) in pdf

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 2015. If there were prior year unallowed losses from 2015, 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 2015, 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).

(a) Loss From

Name of Activity

(b) Ratio

Worksheet 2, Column (e)

and Losses

▶

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

1.00

Instructions for Form 8810 (2016)