Instructions For Form 8582-Cr - Passive Activity Credit Limitations - 2008 Page 10
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15lived with your spouse at any time
Use Part II to figure the credit
to the recharacterization of passive
during the year.
allowed if you have any credits from
income rules. For information on
rental real estate activities in which
recharacterization of income, see
Lines 4a through 4c. Individuals
you actively participated (other than
Pub. 925 or Temporary Regulations
must include on lines 4a through 4c
rehabilitation credits and low-income
section 1.469-2T(f).
credits from passive activities that
housing credits). See Rental Activities
were not entered on Worksheets 1, 2,
When figuring modified adjusted
beginning on page 1 for details.
or 3. Trusts must include credits from
gross income, any overall loss from
all passive activities in Worksheet 4.
Line 9. Married persons filing
an entire disposition of an interest in
Use Worksheet 4 to figure the
separate returns who lived apart from
a passive activity is taken into
amounts to enter on lines 4a and 4b.
their spouses at all times during the
account as a nonpassive loss if you
year must enter $75,000 on line 9
do not have any net passive income
Line 6. If Form 8582, line 4, shows
instead of $150,000. Married persons
after combining net income and
net income or you did not complete
filing separate returns who lived with
losses from all other passive activities
Form 8582 because you had net
their spouses at any time during the
(that is, Form 8582, line 4 is a loss or
passive income, you must figure the
year are not eligible for the special
zero). If you do have net passive
tax on the net passive income. If you
allowance. They must enter -0- on
income when you combine the net
have an overall loss on an entire
line 16 and go to line 17.
losses and net income from all other
disposition of your interest in a
passive activities, the overall loss
passive activity, reduce net passive
Line 10. To figure modified adjusted
from the disposition is taken into
income, if any, on Form 8582, line 4,
gross income, combine all the
account as a nonpassive loss only to
amounts used to figure adjusted
to the extent of the loss (but not
the extent that it exceeds that net
gross income except do not take into
below zero) and use only the
passive income.
remaining net passive income in the
account:
•
computation below. If you had a net
Any passive activity loss as defined
Line 12. Do not enter more than
in section 469(d)(1),
passive activity loss, enter -0- on line
$12,500 on line 12 if you are married
•
6 and go to line 7.
Any rental real estate loss allowed
filing a separate return and you and
to real estate professionals (defined
your spouse lived apart at all times
Figure the tax on net passive
under Activities That Are Not Passive
during the year. Married persons filing
income as follows.
Activities on page 1),
separate returns who lived with their
•
Any overall loss from a PTP,
A. Taxable income
spouses at any time during the year
•
including net
The taxable amount of social
are not eligible for the special
passive income . . . . .
security and tier 1 railroad retirement
allowance. They must enter -0- on
B. Tax on line A* . . . . . . . . . . . . . .
benefits,
line 16 and go to line 17.
•
The deduction allowed under
C. Taxable income without
Line 15. Figure the tax attributable
net passive income . . .
section 219 for contributions to IRAs
to the amount on line 14 as follows.
and certain other qualified retirement
D. Tax on line C* . . . . . . . . . . . . . .
plans,
A. Taxable income . . . . . . .
E. Subtract line D from line B
•
The domestic production activities
and enter the result on
B. Tax on line A* . . . . . . . . . . . . . .
deduction,
Form 8582-CR, line 6 . . . . . . . . .
•
C. Enter amount from Form
The deduction allowed for one-half
* For Form 1040, use the Tax Table, Tax Computation
8582-CR, line 14 . . . . . .
of self-employment taxes,
Worksheet, or other appropriate method you used to
•
figure your tax. For Form 1041, use the Tax Rate
The exclusion from income of
D. Subtract line C from line
Schedule, Qualified Dividends Tax Worksheet, or
A . . . . . . . . . . . . . . . .
interest from series EE and I U.S.
Schedule D, whichever applies.
savings bonds used to pay higher
E. Tax on line D* . . . . . . . . . . . . . .
Note. When using taxable income in
education expenses,
•
F. Subtract line E from line B
the above computation, it is not
The exclusion of amounts received
and enter the result on
necessary to refigure items that are
under an employer’s adoption
Form 8582-CR, line 15 . . . . . . . .
based on a percentage of adjusted
assistance program,
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gross income.
The student loan interest
* For Form 1040, use the Tax Table, Tax Computation
Line 7. If line 7 is zero because the
deduction, or
•
Worksheet, or other appropriate method you used to
tax on the net passive income on line
The tuition and fees deduction.
figure your tax. For Form 1041, use the Tax Rate
6 is greater than your credits from
Schedule, Qualified Dividends Tax Worksheet, or
Include in modified adjusted gross
Schedule D, whichever applies.
passive activities on line 5, all your
income any portfolio income and
credits from passive activities are
Note. When using taxable income in
expenses that are clearly and directly
allowed. In this case, enter the
the above computation, it is not
allocable to portfolio income. Also
amount from line 5 on line 37 and
necessary to refigure items that are
include any income that is treated as
report the credits on the forms
based on a percentage of adjusted
nonpassive income, such as overall
normally used. Do not complete
gross income.
gain from a PTP and net income from
Worksheets 5 through 9.
an activity or item of property subject
Part II—Special
Allowance for Rental
Real Estate Activities
With Active Participation
Married persons filing
!
separate returns who lived
with their spouses at any time
CAUTION
during the year are not eligible to
complete Part II.
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