Instructions For Form 8582-Cr (Rev. December 2009) (Page 14 of 15) in pdf

Medicare taxes paid on certain

you acquired your interest before

Computation of Allowed

employee tips.

1990 (regardless of the date placed in

Passive Activity Credits

service) allowed under the special

From PTPs

allowance are the smaller of the total

Publicly Traded

Complete Steps 1 and 2 only if you

credits from Step 3 or the amount

have net passive income from a PTP

Partnerships (PTPs)

figured in Step 4. If Step 4 is smaller

with passive activity credits (including

than Step 3, allocate the amount in

A PTP is a partnership whose

prior year unallowed credits).

Step 4 pro rata to the credits from

interests are traded on an established

Step 1. Figure the tax attributable to

each PTP in Step 3.

securities market or are readily

net passive income from each PTP

tradable on a secondary market (or

with passive activity credits (including

Complete Steps 6 through 8 only if

its substantial equivalent).

prior year unallowed credits) by

you have low-income housing credits

following the steps shown in the

(including prior year unallowed

An established securities market

worksheet in the line 6 instructions on

credits) for property placed in service

includes any national securities

page 10. Complete a separate tax

after 1989 from a PTP in which you

exchange and any local exchange

computation for each PTP with net

acquired your interest after 1989.

registered under the Securities

passive income.

Exchange Act of 1934 or exempted

Step 6. Reduce low-income housing

from registration because of the

Step 2. Passive activity credits from

credits (including prior year unallowed

limited volume of transactions. It also

each PTP are allowed to the extent of

credits) for property placed in service

the tax attributable to net passive

includes any over-the-counter market.

after 1989 from each PTP in which

income from the same PTP. Credits

A secondary market generally

you also acquired your interest after

in excess of the tax attributable to net

exists if a person stands ready to

1989 to the extent of the tax

passive income may be allowed

make a market in the interest. An

attributable to net passive income

under one or more steps below.

interest is treated as readily tradable

from that PTP, which was figured in

Complete Steps 3 through 5 only if

if the interest is regularly quoted by

Step 1.

your passive activity credits (including

persons, such as brokers or dealers,

prior year unallowed credits) include

Step 7. Before beginning this step,

who are making a market in the

rehabilitation credits from rental real

interest.

complete Form 8582-CR if you have

estate activities from PTPs,

any passive credits that are not from

low-income housing credits for

The substantial equivalent of a

PTPs. Subtract the sum of the credits

property placed in service before

secondary market exists if there is no

allowed in Step 5 above and Form

1990 from PTPs, or low-income

identifiable market maker, but holders

8582-CR, line 36, from the amount on

housing credits from PTPs in which

of interests have a readily available,

Form 8582-CR, line 35, to figure the

you acquired your interest before

regular, and ongoing opportunity to

tax attributable to the special

1990 (regardless of the date placed in

sell or exchange their interests

allowance available for the credits in

service).

through a public means of obtaining

Step 6.

Step 3. Reduce rehabilitation credits

or providing information on offers to

from rental real estate activities from

buy, sell, or exchange interests.

If your only passive credits are

each PTP, low-income housing

Similarly, the substantial equivalent of

from PTPs, complete the steps

credits for property placed in service

a secondary market exists if

shown in the worksheet in the line 35

before 1990 from each PTP, and any

prospective buyers and sellers have

instructions on page 13. Subtract the

low-income housing credits (including

the opportunity to buy, sell, or

credits allowed in Step 5 above from

prior year unallowed credits) from

exchange interests in a timeframe

the tax figured on line K of that

each PTP in which you acquired your

and with the regularity and continuity

worksheet. The result is the tax

interest before 1990 (regardless of

that the existence of a market maker

attributable to the special allowance

the date placed in service) to the

would provide.

available for the credits in Step 6.

extent of the tax, which was figured in

Step 1, attributable to net passive

Credits From PTPs

Step 8. Low-income housing credits

income from that PTP.

allowed under the special allowance

A credit from a passive activity held

Step 4. Before beginning this step,

for property placed in service after

through a PTP is allowed to the

complete Form 8582-CR if you have

1989 from a PTP in which you also

extent of the tax attributable to net

any passive credits that are not from

acquired your interest after 1989 are

passive income from that partnership.

PTPs. Subtract the total of lines 16,

In addition, rehabilitation credits and

the smaller of the total credits from

30, and 36, if any, of Form 8582-CR,

low-income housing credits from

Step 6 or the amount figured in Step

from the amount on line 27 of Form

rental real estate activities held

7. If Step 7 is smaller than Step 6,

8582-CR, to figure the tax attributable

through PTPs are allowed to the

allocate the amount in Step 7 pro rata

to the special allowance available for

extent of any special allowance that

to the credits from each PTP in Step

the credits in Step 3.

remains after taking into account

If your only passive credits are

losses and credits from rental real

from PTPs, complete lines 21 through

Step 9. Add the credits from Steps

estate activities not owned through

27 of Form 8582-CR as a worksheet.

PTPs. See Special Allowance for

2, 5, and 8. These are the total

The amount on line 27 is the tax

Rental Real Estate Activities

credits allowed from passive activities

attributable to the special allowance

beginning on page 2.

of PTPs.

available for the credits in Step 3.

Step 10. Figure the allowed and

Do not enter credits from

Step 5. Rehabilitation credits from

unallowed credits from each PTP.

PTPs on the worksheets or on

rental real estate activities of PTPs,

Report the allowed credits on the

Form 8582-CR. Instead, use

low-income housing credits for

CAUTION

forms normally used. Keep a record

the following steps to figure the

property placed in service before

of the unallowed credits to be carried

allowed and unallowed credits from

1990 by PTPs, and low-income

passive activities held through PTPs.

forward to next year.

housing credits from PTPs in which

-14-

Instructions for Form 8582-CR (2009)

Instructions For Form 8582-Cr (Rev. December 2009) Page 14

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