Instructions for IRS Form 8810 Corporate Passive Activity Loss and Credit Limitations

This document contains official instructions for IRS Form 8810 , Corporate Passive Activity Loss and Credit Limitations - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury.

FAQ

Q: What is IRS Form 8810?
A: IRS Form 8810 is used to calculate the passive activity loss and credit limitations for corporations.

Q: What are passive activity losses?
A: Passive activity losses are losses from business activities in which the taxpayer does not materially participate.

Q: Why do corporations need to report passive activity losses?
A: Corporations need to report passive activity losses to determine the allowed deduction or credit for passive activities.

Q: What is the purpose of IRS Form 8810?
A: The purpose of IRS Form 8810 is to compute the allowable passive activity loss and credit for corporations.

Q: How do you calculate passive activity loss on IRS Form 8810?
A: Passive activity loss is calculated by adding together the losses from all passive activities and comparing them to the taxpayer's passive activity income.

Q: What are the limitations on passive activity losses?
A: There are limitations on passive activity losses that depend on the taxpayer's participation in the activity and their income.

Q: What is the passive activity credit?
A: The passive activity credit is a nonrefundable credit that is based on the taxpayer's participation in certain passive activities.

Q: How do you calculate the passive activity credit?
A: The passive activity credit is calculated by combining the credits from all passive activities and applying certain limitations.

Q: Are there any exceptions to passive activity loss limitations?
A: Yes, there are exceptions for real estate professionals and certain rental real estate activities.