Instructions For Form 8582 - 2010 Page 9
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13Example. Line 5 has a loss of
Example. Your adjusted gross
line 16 of Form 8582 to those activities
$42,000 (reported as a positive
income on line 37 of Form 1040 is
by completing Worksheets 4, 5, and 6
amount) and line 9 is $25,000. You
$92,000, and you have taxable social
or 7.
enter $25,000 on line 10 (the smaller of
security benefits of $5,500 on line 20b.
Complete Worksheet 4 only if you
line 5 or line 9, both treated as positive
Your modified adjusted gross income is
entered an amount (other than zero) on
amounts).
$86,500 ($92,000 – $5,500).
line 10 or 14 of Form 8582. Otherwise,
Line 9. Do not enter more than
Married persons filing separate
skip Worksheet 4 and complete
$12,500 on line 9 if you are married
!
returns who lived with their
Worksheet 5 for all activities in
filing a separate return and you and
spouses at any time during the
Worksheets 1 or 3 that have overall
CAUTION
your spouse lived apart at all times
year are not eligible for the special
losses in column (e) and all activities in
during the year.
allowance. They must enter -0- on line
Worksheet 2.
10 and go to line 15.
Part III—Special
Worksheet 4
Line 5. Enter on line 5 the smaller of
Allowance for
the loss on line 1d or the loss on line 4.
Use Worksheet 4 to allocate the special
allowance on line 10 or line 14 of Form
Example. Line 1d has a loss of
Commercial
8582 among your rental real estate
$3,000, line 2c is zero, and line 3d has
activities.
Revitalization
a gain of $100. The combined loss on
line 4 is $2,900. You enter $2,900 as a
In the first column of Worksheet 4,
Deductions From Rental
positive number on line 5 (the smaller
enter the name of each activity. In the
of the loss on line 1d or the loss on
Real Estate Activities
second column, enter the form or
line 4).
schedule and line number on which the
Use Part III to figure the maximum
Line 6. Married persons filing separate
loss will be reported.
commercial revitalization deduction
returns who lived apart from their
allowed from a rental real estate
Example. You receive a Schedule
spouses at all times during the year
activity.
K-1 from partnership P that reports
must enter $75,000 on line 6 instead of
losses from two rental real estate
Enter all numbers in Part III as
$150,000.
activities, Activity X and Activity Y. The
positive amounts (that is, greater than
Line 7. To figure modified adjusted
losses from partnership P are reported
zero.)
gross income, combine all the amounts
on line 28A of Schedule E. In the first
used to figure adjusted gross income
Married persons filing separate
two columns of Worksheet 4, enter:
except do not take into account:
!
returns who lived with their
•
Passive income or loss included on
spouses at any time during the
Name of Activity
Form or Schedule
CAUTION
Form 8582,
year are not eligible for the special
•
Activity X
Sch E, line 28A
Any rental real estate loss allowed to
allowance. They must enter -0- on line
real estate professionals (defined under
14 and go to line 15.
Activity Y
Sch E, line 28A
Activities That Are Not Passive
Line 11. Enter $12,500 (reduced by
Activities on page 2),
If the loss from an activity is reported in
the amount, if any, on line 10) on line
•
Any overall loss from a PTP,
more than one place, identify both
11 if you are married filing a separate
•
The taxable amount of social security
locations in the second column (for
return and you and your spouse lived
and tier 1 railroad retirement benefits,
example, Sch E, line 28A/Form 4797,
apart at all times during the year.
•
Deductible contributions to traditional
line 2). If you need additional space,
individual retirement accounts (IRAs)
show this information on an attached
Part IV—Total Losses
and section 501(c)(18) pension plans,
statement.
•
The domestic production activities
Allowed
deduction,
Enter all activities with overall losses
•
Use Part IV to figure the amount of the
The deduction allowed for one-half of
from Worksheets 1 and 2 as follows.
PAL (as determined in Part I) allowed
•
self-employment taxes,
If you entered an amount on line 10,
•
for 2010 from all passive activities.
The exclusion from income of interest
list on Worksheet 4 all activities with an
from series EE and I U.S. savings
overall loss in column (e) of
Line 16. Use the worksheets on Form
bonds used to pay higher education
Worksheet 1.
8582 and the following instructions for
•
expenses,
If you entered an amount on line 14,
those worksheets to figure the
•
The exclusion of amounts received
list on Worksheet 4 all activities with an
unallowed loss to be carried forward
under an employer’s adoption
overall loss in column (c) of
and the allowed loss to report on your
assistance program,
Worksheet 2.
forms and schedules for 2010.
•
•
The student loan interest deduction,
If you entered amounts on both lines
Worksheets 1, 2, and 3
or
10 and 14 of Form 8582, you must
•
The tuition and fees deduction.
complete two separate Worksheets 4.
Worksheets 1 and 3, columns (d) and
For the second worksheet, you either
(e), show whether an activity had an
Include in modified adjusted gross
may attach an extra copy of page 2 of
income any portfolio income and
overall gain or loss. Worksheet 2,
Form 8582 or your own schedule in the
column (c), shows the CRDs from
expenses that are clearly and directly
same format as Worksheet 4. On the
allocable to portfolio income. Also
rental real estate activities. If you have
first Worksheet 4, list all activities with
activities that show overall gain in
include any income that is treated as
an overall loss in column (e) of
column (d) of Worksheet 1 or 3, report
nonpassive income, such as overall
Worksheet 1. On the second
all the income and losses listed in
gain from a PTP and net income from
Worksheet 4, list all activities with an
columns (a), (b), and (c) for those
an activity or item of property subject to
overall loss in column (c) of
activities on the proper forms and
the recharacterization of passive
Worksheet 2.
schedules.
income rules.
Column (a). Enter the overall loss
When figuring modified adjusted
If you have activities that show an
gross income, include any overall loss
overall loss in column (e) of Worksheet
from column (e) of Worksheet 1 or
from the entire disposition of a passive
1 or 3 or column (c) of Worksheet 2,
column (c) of Worksheet 2 for each
activity (considered a nonpassive loss).
you must allocate your allowed loss on
activity.
-9-
Instructions for Form 8582 (2010)
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