Worksheet 4 — Instruction 8810 — Instructions for Form

Use Worksheet 4 to allocate the unallowed deductions and losses for each activity among Form 1120 deductions and any losses to be reported on Form 4797, or

Form 8949 and Schedule D (Form 1120), as applicable.

If the unallowed loss is reported on one form or schedule, skip the following example and complete Worksheet 4.

If the unallowed loss is from losses reported on more than one form or schedule, allocate the unallowed loss from among the net losses as follows.

Instructions for Form 8810 (2025) 9

Worksheet 4—Allowed Deductions and Losses Keep for Your Records

Name of Activity:	(a) Deductions and Losses	(b) Ratio	(c) Unallowed Deductions and Losses	(d) Allowed Deductions and Losses
1. Form 1120 deductions: a. Cost of goods sold . . . . . . . . . . . . . . . .
b. Compensation of officers . . . . . . . . . . .
c. Salaries and wages . . . . . . . . . . . . . . .
d. Repairs and maintenance . . . . . . . . . . .
e. Bad debts . . . . . . . . . . . . . . . . . . . . . .
f. Rents . . . . . . . . . . . . . . . . . . . . . . . . . .
g. Taxes and licenses . . . . . . . . . . . . . . . .
h. Interest . . . . . . . . . . . . . . . . . . . . . . . .
i.Depreciation . . . . . . . . . . . . . . . . . . . . .
j. Depletion . . . . . . . . . . . . . . . . . . . . . . .
k.Advertising . . . . . . . . . . . . . . . . . . . . .
l.Other deductions . . . . . . . . . . . . . . . . .
Total Form 1120 deductions . . . . . . . . . ▶		1.00
2. Schedule D and Form 8949 losses . . . . . .
3. Form 4797 losses . . . . . . . . . . . . . . . . . .
Name of Activity:	(a) Deductions and Losses	(b) Ratio	(c) Unallowed Deductions and Losses	(d) Allowed Deductions and Losses
1. Form 1120 deductions: a. Cost of goods sold . . . . . . . . . . . . . . . .
b. Compensation of officers . . . . . . . . . . .
c. Salaries and wages . . . . . . . . . . . . . . .
d. Repairs and maintenance . . . . . . . . . . .
e. Bad debts . . . . . . . . . . . . . . . . . . . . . .
f. Rents . . . . . . . . . . . . . . . . . . . . . . . . . .
g. Taxes and licenses . . . . . . . . . . . . . . . .
h. Interest . . . . . . . . . . . . . . . . . . . . . . . .
i.Depreciation . . . . . . . . . . . . . . . . . . . . .
j. Depletion . . . . . . . . . . . . . . . . . . . . . . .
k.Advertising . . . . . . . . . . . . . . . . . . . . .
l.Other deductions . . . . . . . . . . . . . . . . .
Total Form 1120 deductions . . . . . . . . . ▶		1.00
2. Schedule D and Form 8949 losses . . . . . .
3. Form 4797 losses . . . . . . . . . . . . . . . . . .

10 Instructions for Form 8810 (2025)

gain from passive activities of the same PTP. Any unallowed loss from a PTP passive activity is carried forward and allowed in a tax year when the corporation has passive income from the same PTP or when the corporation disposes of its entire interest in that PTP to an unrelated person in a fully taxable transaction.

Income from passive activities the corporation holds through a PTP cannot be used to offset losses from passive activities the corporation holds through another PTP or losses from any other passive activities.

PAL rules for partners in PTPs. Do not include any income, gains, deductions, or losses from PTP passive activities on Form 8810. Instead, use the following rules to figure and report income, gains, deductions, and losses from passive activities held through each PTP that the corporation owned an interest in during the tax year.

1. Combine any current year income, gains, deductions, and losses, and prior year unallowed losses to see if there is an overall gain or loss. Include only the same types of income and losses that would be included in figuring net income or loss from a non-PTP passive activity (see Passive Activity Income and Deductions , earlier).

2. If there is an overall gain, the net gain portion (total income in excess of total deductions and losses) is nonpassive income. Report the income, deductions, and losses on the forms and schedules normally used.

3. If there is an overall loss (other than in a year in which the corporation disposed of its entire interest in the PTP), the deductions and losses are allowed to the extent of the income, and the excess deductions and losses are carried forward for use in a future year when there is income to offset them. Report the income and the loss allowed to the extent of income on the form or schedule normally used.