IRS Form 8810 — Corporate Passive Activity Loss and Credit Limitations

What is Form 8810?

Form 8810 is a corporate tax form used to calculate passive activity loss and passive activity credit limitations. It helps determine which passive losses and credits are allowed on the corporation’s return for the current year and which amounts may be limited or carried forward to a later year.

In short, it is a limitation and carryforward worksheet for corporations — not a general form for claiming incentives. Only corporations with passive activities use it, and the result feeds into the corporation’s income tax return.

Who uses Form 8810?

When might a corporation need Form 8810?

These are common, educational examples — not tax advice. A corporation may need Form 8810 when:

• The corporation receives Schedule K-1 income or loss from a partnership or S corporation activity where it does not materially participate.
• The corporation owns rental real estate treated as a passive activity.
• The corporation has passive credits carried over from a prior year.
• The corporation has passive losses that may be limited this year.
• The corporation disposes of an interest in a passive activity and needs to handle unused credits.

What does Form 8810 calculate?

Form 8810 vs Form 8582

Common mistakes

• Treating Form 8810 as a general tax credit form.
• Using Form 8810 for an individual return instead of Form 8582.
• Ignoring prior-year unallowed passive losses or credits.
• Mixing active business losses with passive activity losses.
• Forgetting that passive activity rules depend on material participation.
• Not attaching the form when it is required with the corporate return.

Documents and information you may need

Plain-English example

Frequently asked questions

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