Instructions For Form 8582-Cr (Rev. December 2009) Page 5
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15exploiting) oil and gas resources or
the partnership placed in service a
Dispositions
geothermal deposits.
residential rental building that
Unallowed PACs, unlike unallowed
qualified for the low-income housing
passive activity losses, are not
Activities conducted through
credit.
allowed when you dispose of your
•
partnerships, S corporations, and
Mr. Jones received a Schedule K-1
interest in an activity. However, you
C corporations subject to section
(Form 1065) from the partnership.
may elect to increase the basis of the
469. Once a partnership or
The low-income housing credit
credit property by the amount of the
corporation determines its activities
($12,000) is shown on Schedule K-1,
original basis reduction of the
under these rules, a partner or
box 15 with code D.
property to the extent that the credit
•
shareholder may use these rules to
Mr. Jones’ net passive income for
has not been allowed under the
group those activities with:
2009 is zero.
•
passive activity rules. Unallowed
•
Each other,
Mr. Jones will need the following
•
PACs that are not used to increase
Activities conducted directly by the
forms to figure the low-income
the basis of the credit property are
partner or shareholder, or
housing credit.
•
carried forward until they are allowed.
Activities conducted through other
1. Form 8586, Low-Income
To make the election, complete Form
partnerships and corporations.
Housing Credit (not illustrated).
8582-CR, Part VI. No basis
A partner or shareholder may not
2. Form 8582-CR, Passive
adjustment may be elected on a
treat as separate activities those
Activity Credit Limitations.
partial disposition of your interest in a
activities grouped together by the
passive activity.
Step 1. Mr. Jones follows the
partnership or corporation.
instructions for code D on Schedule
Partial disposition of an activity.
Example of How To
K-1, box 15, and enters the $12,000
You may treat the disposition of
Complete Form 8582-CR
low-income housing credit on line 11
substantially all of an activity as a
of Form 8586.
For tax years beginning after 2009,
separate activity if you can prove with
line numbers may change. See the
reasonable certainty:
Step 2. Line 15 of Form 8586 asks
form instructions on how to report the
1. The prior year unallowed
for the passive activity low-income
passive activity credit.
losses, if any, allocable to the part of
housing credit for 2009. The amount
the activity disposed of, and
In 2009, John Jones purchased an
is figured on Form 8582-CR and the
2. The net income or loss for the
interest as a limited partner in
worksheets. Worksheet 3 of Form
year of disposition allocable to the
Partnership A. Mr. Jones is married
8582-CR is used for the post-1989
part of the activity disposed of.
and files a joint return. During 2009,
low-income housing credits.
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
(c) Add cols. (a) and (b)
Partnership A
8586
12,000
Total. Enter on lines 3a and 3b of Form 8582-CR
12,000
-5-
Instructions for Form 8582-CR (2009)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial