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2025›Instructions for Form 8810›General Instructions

Who Must File

Instruction 8810 — Instructions for Form 8810, Corporate Passive Activity Loss and Credit Limitations · 2026-10-03 edition · updated 2026-10-04 · United States

Personal service corporations and closely held corporations that have losses or credits (including prior year unallowed losses and credits) from passive activities must file Form 8810.

Passive activity loss (PAL). A personal service corporation has a PAL for the year if the total losses (including prior year unallowed losses) from its passive activities exceed the total income from its passive activities. A closely held corporation has a PAL for the year if the total losses (including prior year unallowed losses) from all its passive activities exceed the sum of the total income from all its passive activities and its net active income.

Passive activity credit. A personal service corporation has a passive activity credit for the year if its credits from passive activities (including prior year unallowed credits) exceed the tax attributable to net passive income. A closely held

corporation has a passive activity credit for the year if its credits from passive activities (including prior year unallowed credits) exceed the sum of the tax attributable to net passive income and the tax attributable to net active income.

For more information, see Pub. 925, Passive Activity and At-Risk Rules.

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▸Contents — Instruction 8810 — Instructions for Form 8810, Corporate Passive Activity Loss and Credit Limitations
Instruction 8810 — Instructions for Form 8810, Corporate Passive Activity Loss and Credit Limitations

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