8810

Corporate Passive Activity Loss and Credit Limitations

Agency
IRS
Revision
2025
Fillable fields
20
Pages
1
Official source
IRS form page
Checked
October 21, 2026
Fill 8810 online
Page 1 of form 8810

Form 8810: Corporate Passive Activity Loss and Credit Limitations

Form 8810, Corporate Passive Activity Loss and Credit Limitations, is a 2025 tax year form for corporations, not individuals. The instructions say personal service corporations and closely held corporations use it to figure the amount of any passive activity loss (PAL) or credit for the current tax year and the amount of losses and credits from passive activities allowed on the corporation's tax return. It is also used to make the election to increase the basis of credit property when the corporation disposes of its interest in an activity for which it has an unused credit.

The instructions say passive activities generally include trade or business activities in which the corporation did not materially participate for the tax year, and rental activities regardless of its participation. The form has three parts and relies on worksheets printed in the instructions. Individuals subject to the passive activity rules use Form 8582 instead.

The form says to attach it to the tax return. You can fill it out free in your browser on this page and download the result without an account.

What's on Form 8810

Header

The corporation's name and employer identification number, the 2025 tax year and the note to attach the form to the tax return.

Part I, lines 1a to 1d

Current year income, current year deductions and losses, and prior year unallowed losses, each taken from Worksheet 2, then combined on line 1d.

Part I, lines 2 to 4

Net active income for closely held corporations (personal service corporations enter -0-), unallowed passive activity deductions and losses, and total deductions and losses allowed.

Part II, lines 5a to 9

Current year and prior year unallowed credits from Worksheet 5, the tax attributable to net passive income and net active income, and the unallowed and allowed passive activity credit.

Part III, lines 10 to 13

A box to elect to increase the basis of credit property, the name of the passive activity disposed of, a description of the property and the amount of unallowed credit that reduced its basis.

Worksheets in the instructions

Worksheets 1 to 6 in the instructions figure income, losses, allocations and credits by activity. The form itself refers to Worksheets 1, 2 and 5.

How to fill out Form 8810

  1. 1

    Worksheets 1 and 2 first

    The form says to see the instructions and complete Worksheets 1 and 2 before Part I. Worksheet 1 totals income, gains, deductions and losses for each passive activity.

  2. 2

    Lines 1a to 1d

    Enter the totals of Worksheet 2, columns (a), (b) and (c), on lines 1a, 1b and 1c, then combine them on line 1d.

  3. 3

    Line 2

    Closely held corporations enter net active income. Personal service corporations enter -0-. The instructions list the items left out when figuring net active income.

  4. 4

    Lines 3 and 4

    Combine lines 1d and 2 on line 3. The instructions say that if line 1d or 3 shows net income or zero, all the deductions and losses are allowed. Activities with an overall loss go through Worksheets 3 and 4.

  5. 5

    Part II

    Complete Form 3800 and Worksheet 5 first, then enter credits on lines 5a and 5b. Line 7 is the tax attributable to net passive and net active income, figured with the computation in the instructions. Line 9 is the allowed credit.

  6. 6

    Part III

    Check line 10 only if the corporation elects to increase the basis of credit property after a fully taxable disposition of its entire interest, then complete lines 11 to 13.

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Where it goes and what the instructions add

Attach to the return

The form says "Attach to your tax return (personal service and closely held corporations only)."

Reporting allowed amounts

Allowed deductions are entered on the appropriate lines of Form 1120. Allowed passive activity general business credits go on line 3, 24 or 33 of Form 3800.

Prior year carryovers

Column (c) of Worksheet 2 takes prior year unallowed losses from Worksheet 4 in the 2024 instructions. Worksheet 5, column (b), takes prior year unallowed credits from Worksheet 6 in the 2024 instructions.

Publicly traded partnerships

The instructions say not to enter credits from publicly traded partnerships (PTPs) on Form 8810 or the worksheets. Special rules apply to PTP losses as well.

The basis election

The instructions say the Part III election is irrevocable once made, and that no basis adjustment can be elected on a partial disposition or a disposition that is not fully taxable.

Latest information

The form points to www.irs.gov/Form8810 for instructions and the latest information. The About page lists no recent developments.

Related forms

Who files Form 8810?

  • Personal service corporations

    A corporation whose principal activity for the testing period is performing personal services, such as health, law, engineering, architecture, accounting, actuarial science, performing arts or consulting, substantially performed by employee-owners.

  • Closely held corporations

    The instructions define one as a corporation, not a personal service corporation, in which more than 50% in value of its outstanding stock is owned by or for not more than five individuals at any time during the last half of the tax year.

  • Consolidated groups

    For an affiliated group filing a consolidated return, the instructions say the passive activity loss and credit are determined by taking into account items of each member of the group.

  • Corporations electing a basis increase

    A corporation that disposed of its entire interest in a passive activity in a fully taxable transaction uses Part III to elect to increase the basis of credit property.

  • Not for individuals

    The instructions say individuals subject to the passive activity rules use Form 8582, Passive Activity Loss Limitations.

The instructions say personal service corporations and closely held corporations that have losses or credits (including prior year unallowed losses and credits) from passive activities file Form 8810.

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Questions about Form 8810

Who files Form 8810?

The instructions say personal service corporations and closely held corporations that have losses or credits, including prior year unallowed losses and credits, from passive activities.

Can an individual use Form 8810?

No. The instructions say individuals subject to the passive activity rules use Form 8582, Passive Activity Loss Limitations.

Is Form 8810 filed on its own?

No. The form says to attach it to the tax return of the personal service or closely held corporation.

What counts as a passive activity?

The instructions say passive activities generally include trade or business activities in which the corporation did not materially participate for the tax year, and rental activities regardless of its participation.

Do the worksheets get filled out before the form?

Yes. The form says to complete Worksheets 1 and 2 before Part I and Worksheet 5 before Part II. The worksheets are in the instructions.

Can the Part III election be undone?

The instructions say once the election to increase the basis of credit property is made, it is irrevocable.