Publicly Traded — Instruction 8810 — Instructions for Form

A PTP is a partnership whose interests are traded on an established securities market or are readily tradable on a secondary market (or its substantial equivalent).

An established securities market includes any national securities exchange and any local exchange registered under the Securities Exchange Act of 1934 or exempted from registration because of the limited volume of transactions. It also includes any over-the-counter market.

A secondary market generally exists where a person stands ready to make a market in the interest. An interest is treated as readily tradable if the interest is regularly quoted by persons, such as brokers or dealers, who are making a market in the interest.

The substantial equivalent of a secondary market exists where there is no identifiable market maker, but holders of interests have a readily available, regular, and ongoing opportunity to sell or exchange interests through a public means of obtaining or providing information on offers to buy, sell, or exchange interests. Similarly, the substantial equivalent of a secondary market exists where prospective buyers and sellers have the opportunity to buy, sell, or exchange interests in a time frame and with the regularity and continuity that the existence of a market maker would provide.

Special Instructions for PTPs Section 469(k) provides that the passive activity rules and limitations must be applied separately to items from each PTP.

Losses from passive activities the corporation holds through a PTP can generally be used only to offset income or

Instructions for Form 8810 (2025) 11

Worksheet 5—For Form 8810, Lines 5a and 5b Keep for Your Records

Name of Activity	From Form	(a) Current Year Credits (Line 5a)	(b) Prior Year Unallowed Credits (Line 5b)	(c) Total Credits (Add Columns (a) and (b))






Totals. Enter on Form 8810, lines 5a and 5b . . . . . . . . . . . . . . . . . . . ▶

Credit, before beginning Worksheet 5. See Cooperatives next for special instructions for certain cooperatives.

Enter the credits from Form 3800, lines 2, 23, and 32, in Worksheet 5, column (a). Enter "Form 3800, line" followed by the appropriate line number (2, 23, or 32) in the “From Form” column. Separate the credits by activity and by type before making entries in the worksheet. For example, a corporation has a distilled spirits credit from each of two passive activities. Enter each distilled spirits credit on separate lines in Worksheet 5, column (a). A corporation has a distilled spirits credit and a disabled access credit from the same passive activity. Enter the distilled spirits credit and the disabled access credit on separate lines in Worksheet 5, column (a).

Cooperatives. A closely held cooperative that is allocating part or all of a general business credit to patrons will need to enter the credits being allocated on Worksheet 5 so that the passive activity rules can be applied before any part of the credit is allocated to patrons. For this purpose, Form 3800 should be completed using only credits that will not be allocated to patrons. Credits that are being allocated to patrons should be picked up from the separate credit forms.

Column (b). In figuring this year's passive activity credit, the corporation must take into account any credits from passive activities disallowed for prior years and carried forward to this year adjusted, if required, for items such as recaptured credits (see Regulations section 1.469-3(f)). Enter in Worksheet 5, column (b), the prior year unallowed credits from

Worksheet 6, column (c), located in the 2024 Instructions for Form 8810 (adjusted if required).

For rules about prior year unallowed credits from former passive activities, see section 469(f).

Line 7 If any of the following apply, enter -0- on line 7 and do not complete Part I or Part II of the Computation for Line 7, later.

The corporation is a personal service corporation with a loss or zero on Form 8810, line 1d.
The corporation is a personal service corporation with net passive income on Form 8810, line 1d, and the corporation has an overall loss from the entire disposition of a passive activity that is equal to or greater than the net income on line 1d.
The corporation is a closely held corporation with a loss or zero on Form 8810, line 1d, and that amount is equal to or greater than the net active income on Form 8810, line 2.
The corporation is a closely held corporation with net income on Form 8810, line 3, and the corporation has an overall loss from an entire disposition that is equal to or greater than the net income on line 3.

Computation for Line 7