What is Form 8810?
Form 8810 is essential for closely held and personal service corporations to handle passive activity losses and credits. This form assists these businesses in determining how much of their passive losses or credits can be applied to their tax returns, which is crucial for compliance with tax regulations. By accurately completing Form 8810, corporations can avoid losing valuable credits and make informed decisions about increasing the basis of credit property when disposing of activities with unused credits.
What is Form 8810 used for?
Form 8810 helps corporations manage their passive activity losses and credits. Here’s what it’s used for:
- Calculate current year passive activity loss or credit
- Identify allowable losses and credits for tax returns
- Manage unallowed losses and credits from previous years
How to fill out Form 8810?
- 1
Determine if you must file: Check if your corporation is a personal service or closely held corporation with passive activity losses or credits.
- 2
Complete Worksheets 1 and 2 to calculate passive activity loss or credit for each activity.
- 3
Fill out Part I by combining current year income, deductions, and prior year unallowed losses.
- 4
Complete Part II if applicable to determine credits from passive activities.
- 5
In the Part III, make an election to increase the basis of credit property when disposing of an activity with unused credit, if applicable.
- 6
Review all entries and calculations for accuracy.
- 7
For the signature, check official sources for the latest signature requirements.
Who is required to fill out Form 8810?
Personal service corporations and closely held corporations must complete Form 8810, Corporate Passive Activity Loss and Credit Limitations. This form is essential for reporting passive activity losses and credits on their tax returns.
After completion, these corporations use the form to detail income, deductions, losses, or credits from activities where they did not materially participate, as well as to elect to increase the basis of credit property.
When is Form 8810 not required?
Corporations do not need to file Form 8810 if they lack passive activity losses or credits. This exemption applies to those that materially participate in trade or business activities and certain rental activities. For example, corporations engaged in real estate trades or businesses generating over 50% of their gross receipts may qualify for this exception.
When is Form 8810 due?
The deadline for Form 8810, Corporate Passive Activity Loss and Credit Limitations, is the same as the corporation's tax return. This is usually the 15th day of the fourth month after the tax year ends. For instance, if the tax year ends on December 31, the form is due by April 15 of the following year.
How to get a blank Form 8810?
To obtain a blank Form 8810, you can access our platform, where the Internal Revenue Service (IRS) version is ready for you to fill out. Remember, PDF Guru assists in filling and downloading forms but does not support filing.
How to sign Form 8810?
Form 8810 can be signed electronically or with a handwritten signature. The IRS will accept a wide range of electronic signatures. An electronic signature is a way to get approval on electronic documents.
Where to file Form 8810?
To submit Form 8810, attach it to your U.S. Corporation Income Tax Return (Form 1120). This ensures the IRS reviews it alongside your tax return.
Remember, Form 8810 cannot be submitted online. Instead, mail your complete tax return package to the appropriate IRS address for processing.
