Instructions For Form 8582-Cr - Passive Activity Credit Limitations

based on a percentage of adjusted

Part III—Special

Part V—Passive Activity

gross income.

Allowance for

Credit Allowed

Rehabilitation Credits

Use Part V to figure the PAC (as

Part IV—Special

determined in Part I) that is allowed

From Rental Real Estate

for the current year for all passive

Allowance for

activities.

Activities and

Low-Income Housing

Line 37. If you have only one type of

Low-Income Housing

credit, the amount on line 37 is the

Credits for Property

credit allowed for the year. Enter this

Placed in Service After

amount on the form where it is

Placed in Service Before

normally reported. See Reporting

1989

Allowed Credits on Your Tax Return,

1990 (or From

later. Your unallowed credit is line 5

Pass-Through Interests

Married persons filing

minus line 37.

separate returns who lived

Acquired Before 1990)

Use Worksheets 5 through 9,

with their spouses at any time

CAUTION

whichever apply, to allocate the

during the year are not eligible to

allowed and unallowed credits if you

Married persons filing

complete Part IV.

have credits from more than one

separate returns who lived

activity. Also use the worksheets if

with their spouses at any time

Use Part IV to figure the credit

CAUTION

you have more than one type of

during the year are not eligible to

allowed if you have any low-income

credit.

complete Part III.

housing credits for property placed in

Keep a record of each unallowed

service after 1989. If you held an

Use Part III to figure the credit

credit and the activity to which it

indirect interest in the property

allowed if you have any rehabilitation

belongs so you may claim the credit if

through a partnership, S corporation,

credits or low-income housing credits

it becomes allowable in a future year.

or other pass-through entity, use Part

for property placed in service before

IV only if your interest in the

1990. Also use this part if your

Reporting Allowed Credits

pass-through entity was also acquired

low-income housing credit is from a

on Your Tax Return

after 1989.

partnership, S corporation, or other

pass-through entity in which you

For tax years beginning after

Line 35. Figure the tax attributable

acquired your interest before 1990,

2011, line numbers on the

to the remaining special allowance as

regardless of the date the property

referenced forms may

was placed in service.

follows.

CAUTION

change. See the form instructions for

Line 21. Married persons filing

the referenced forms on how to report

separate returns who lived apart from

A. Taxable income . . . . . . . . .

the passive activity credit allowed.

their spouses at all times during the

B. Tax on line A* . . . . . . . . . . . . . . .

Form 3800. Enter on Form 3800,

year must enter $125,000 on line 21,

C. Enter $25,000

line 3, 24, and 33, whichever apply,

instead of $250,000.

($12,500 if married

the passive activity general business

filing separate return

Skip lines 21 through 26 if you

credits allowed.

and you and your

completed Part II of this form and

spouse lived apart at

Form 8834. See the Instructions for

your modified adjusted gross income

all times during the

Form 8834 for instructions on how to

on line 10 was $100,000 or less

year) . . . . . . . . . . .

report the passive activity credit

($50,000 or less if married filing

D. Enter amount, if

allowed.

separately and you lived apart from

any, from Form

your spouse for the entire year).

8582, line 10 . . . . . .

Publicly Traded

Instead, enter the amount from line

E. Enter the amount,

15 on line 27.

Partnerships (PTPs)

if any, from Form

8582, line 14 . . . . . .

Line 24. Do not enter more than

A PTP is a partnership whose

F. Subtract lines D and E

$12,500 on line 24 if you are married

interests are traded on an established

from line C . . . . . . . . . . . .

filing a separate return and lived apart

securities market or are readily

from your spouse for the entire year.

G. Subtract line F from line A . . .

tradable on a secondary market (or

Line 27. Figure the tax attributable

H. Tax on line G* . . . . . . . . . . . . . . .

its substantial equivalent).

to the amount on line 26 as follows.

I. Subtract line H from line B . . . . . . .

An established securities market

includes any national securities

J. Add lines 16 and 30 of

A. Taxable income . . . . . . .

Form 8582-CR and enter the total . . .

exchange and any local exchange

B. Tax on line A* . . . . . . . . . . . . . . .

registered under the Securities

K. Tax attributable to the remaining

special allowance. Subtract line J

Exchange Act of 1934 or exempted

C. Enter amount from Form

from line I. Enter the result on

from registration because of the

8582-CR, line 26 . . . . . . .

Form 8582-CR, line 35 . . . . . . . . . .

limited volume of transactions. It also

D. Subtract line C from line A

includes any over-the-counter market.

*For Form 1040, use the Tax Table, Tax Computation

E. Tax on line D* . . . . . . . . . . . . . . .

Worksheet, or other appropriate method you used to

A secondary market generally

figure your tax. For Form 1041, use the Tax Rate

F. Subtract line E from line B and enter

exists if a person stands ready to

Schedule, Qualified Dividends Tax Worksheet, or

the result on Form 8582-CR, line 27

Schedule D, whichever applies.

make a market in the interest. An

interest is treated as readily tradable

*For Form 1040, use the Tax Table, Tax Computation

Worksheet, or other appropriate method you used to

if the interest is regularly quoted by

Note. When using taxable income in

figure your tax. For Form 1041, use the Tax Rate

the above computation, it is not

persons, such as brokers or dealers,

Schedule, Qualified Dividends Tax Worksheet, or

who are making a market in the

Schedule D, whichever applies.

necessary to refigure items that are

interest.

based on a percentage of adjusted

Note. When using taxable income in

gross income.

the above computation, it is not

The substantial equivalent of a

necessary to refigure items that are

secondary market exists if there is no

-14-

Instructions for Form 8582-CR (Rev. 01-2012)

Instructions For Form 8582-Cr - Passive Activity Credit Limitations - 2012 Page 14

Related Articles

Related forms

Related Categories