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Lines 3a and 3b. Use Worksheet 3 to figure the amounts to enter on lines 3a and 3b for low-income housing credits for property

placed in service after 1989. If you held an indirect interest in the property through a partnership, S corporation, or other pass-through

entity, use Worksheet 3 only if you also acquired your interest in the pass-through entity after 1989. Use line 3a for the current year

credits and line 3b for prior year unallowed credits for those activities.

After you complete the worksheet below, enter the totals of columns (a) and (b) on the corresponding lines of Form 8582-CR and

then complete line 3c.

Worksheet 3 for Lines 3a and 3b

(keep for your records)

Current Year

Prior Year

Total Credits

Credits

Unallowed Credits

From

Name of Activity

Form

(a) Credit line 3a

(b) Credit line 3b

Totals. Enter on lines 3a and 3b of Form 8582-CR

Lines 4a and 4b. Use Worksheet 4 to figure the amounts to enter on lines 4a and 4b. Use line 4a for all other passive activity credits for

the current year and line 4b for prior year unallowed credits from those activities.

After you complete the worksheet below, enter the totals of columns (a) and (b) on the corresponding lines of Form 8582-CR and

then complete line 4c.

Worksheet 4 for Lines 4a and 4b

(keep for your records)

Current Year

Prior Year

Total Credits

Credits

Unallowed Credits

From

Name of Activity

Form

(a) Credit line 4a

(b) Credit line 4b

Totals. Enter on lines 4a and 4b of Form 8582-CR

If you had only one type of prior

to net passive income, you have a

rental real estate activity for both that

year unallowed credit from a single

PAC for the current year. Generally,

prior year and this year. If you did not

passive activity, figure your prior year

you have net passive income if line 4

actively participate for both years,

unallowed credit by subtracting line

of Form 8582 shows income. For

include the credits in Worksheet 4,

37 of your prior year Form 8582-CR

more information, see the instructions

not in Worksheet 1.

from line 5 of your prior year Form

for Form 8582-CR, line 6, on page

Lines 2a through 2c. Individuals

8582-CR.

10.

(including limited partners) and

qualifying estates who had

Lines 1a through 1c. Individuals

Otherwise, your prior year

rehabilitation credits from rental real

and qualifying estates that actively

unallowed credits are the amounts

estate activities or low-income

participated in rental real estate

shown in column (b) of Worksheet 9

housing credits for property placed in

activities must include the credits

in the prior year Instructions for Form

service before 1990 must include the

(other than rehabilitation credits or

8582-CR. Enter the prior year

credits from those activities on lines

low-income housing credits) from

unallowed credits in column (b) of

2a through 2c. Use Worksheet 2 to

these activities on lines 1a through

Worksheet 1, 2, 3, or 4, whichever

figure the amounts to enter on lines

1c. Use Worksheet 1 to figure the

applies.

2a and 2b.

amounts to enter on lines 1a and 1b.

You must adjust a prior year

If you have low-income housing

See Special Allowance for Rental

unallowed credit if you had to

credits for property placed in service

Real Estate Activities beginning on

recapture any part of the

after 1989, include those credits in

CAUTION

page 2.

credit (for example, due to the early

Worksheet 3 instead of Worksheet 2.

disposition of property) or transfer the

If you are married filing a

If you held an indirect interest in the

credit to a bankruptcy estate.

separate return and lived with

property through a partnership, S

your spouse at any time

corporation, or other pass-through

CAUTION

during the year, even if you actively

entity, use Worksheet 3 only if you

Part I—Passive Activity

participated in the rental real estate

also acquired your interest in the

activity, include the credits in

pass-through entity after 1989.

Credits

Worksheet 4, not in Worksheet 1.

Lines 3a through 3c. Individuals

Use Part I to combine your credits

Note. You may take credits that

(including limited partners) and

from passive activities to determine if

arose in a prior tax year (other than

qualifying estates who had

you have a PAC for the current year.

low-income housing and rehabilitation

low-income housing credits from

If your credits from all passive

credits) under the special allowance

rental real estate activities for

activities exceed the tax attributable

only if you actively participated in the

property placed in service after 1989

-9-

Instructions for Form 8582-CR (2010)

Instructions For Form 8582-Cr - Passive Activity Credit Limitations - Internal Revenue Service - Page 9

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