Instructions For Form 8582-Cr - Passive Activity Credit Limitations

Note. When using taxable income in

based on a percentage of adjusted

Part III—Special

the above computation, it is not

gross income.

necessary to refigure items that are

Allowance for

based on a percentage of adjusted

gross income.

Rehabilitation Credits

Part V—Passive Activity

From Rental Real Estate

Credit Allowed

Activities and

Use Part V to figure the PAC (as

Part IV—Special

determined in Part I) that is allowed

Low-Income Housing

Allowance for

for 2008 for all passive activities.

Credits for Property

Low-Income Housing

Line 37. If you have only one type of

credit, the amount on line 37 is the

Placed in Service Before

Credits for Property

credit allowed for the year. Enter this

1990 (or From

amount on the form where it is

Placed in Service After

normally reported. See Reporting

Pass-Through Interests

1989

Allowed Credits on Your Tax Return

Acquired Before 1990)

below. Your unallowed credit is line 5

Married persons filing

minus line 37.

separate returns who lived

Married persons filing

Use Worksheets 5 through 9,

with their spouses at any time

separate returns who lived

CAUTION

whichever apply, on pages 11 and

during the year are not eligible to

with their spouses at any time

CAUTION

12, to allocate the allowed and

complete Part IV.

during the year are not eligible to

unallowed credits if you have credits

complete Part III.

from more than one activity. Also use

Use Part IV to figure the credit

the worksheets if you have more than

allowed if you have any low-income

Use Part III to figure the credit

one type of credit.

housing credits for property placed in

allowed if you have any rehabilitation

service after 1989. If you held an

credits or low-income housing credits

Keep a record of each unallowed

indirect interest in the property

for property placed in service before

credit and the activity to which it

through a partnership, S corporation,

1990. Also use this part if your

belongs so you may claim the credit if

or other pass-through entity, use Part

low-income housing credit is from a

it becomes allowable in a future year.

IV only if your interest in the

partnership, S corporation, or other

pass-through entity was also acquired

Reporting Allowed Credits

pass-through entity in which you

after 1989.

acquired your interest before 1990,

on Your Tax Return

regardless of the date the property

Line 35. Figure the tax attributable

Form 3468. Enter on Form 3468,

was placed in service.

to the remaining special allowance as

line 16, the passive activity

follows.

Line 21. Married persons filing

rehabilitation and energy credits.

separate returns who lived apart from

Form 3800. Enter on Form 3800,

their spouses at all times during the

A. Taxable income . . . . . . . . .

line 5, the total passive activity

year must enter $125,000 on line 21,

B. Tax on line A* . . . . . . . . . . . . . . .

general business credit allowed.

instead of $250,000.

C. Enter $25,000

Form 5884. Enter on Form 5884,

($12,500 if married

Skip lines 21 through 26 if you

line 7, the passive activity work

filing separate return

completed Part II of this form and

and you and your

opportunity credit.

your modified adjusted gross income

spouse lived apart at

on line 10 was $100,000 or less

Form 6478. Enter on Form 6478,

all times during the

year) . . . . . . . . . . .

($50,000 or less if married filing

line 13, the passive activity alcohol

and cellulosic biofuel fuels credit

separately and you lived apart from

D. Enter amount, if

any, from Form

allowed.

your spouse for the entire year).

8582, line 10 . . . . . .

Instead, enter the amount from line

Form 8586. Enter on Form 8586,

15 on line 27.

E. Enter the amount,

line 15, the passive activity low

if any, from Form

income housing credit allowed.

Line 24. Do not enter more than

8582, line 14 . . . . . .

$12,500 on line 24 if you are married

F. Subtract lines D and E

Form 8834. See the Instructions for

filing a separate return and lived apart

from line C . . . . . . . . . . . .

Form 8834 for instructions on how to

from your spouse for the entire year.

report the passive activity credit

G. Subtract line F from line A . . .

allowed.

Line 27. Figure the tax attributable

H. Tax on line G* . . . . . . . . . . . . . . .

to the amount on line 26 as follows.

Form 8835. Enter on Form 8835,

I. Subtract line H from line B . . . . . . .

line 33, the passive activity renewable

J. Add lines 16 and 30 of

electricity, refined coal, and Indian

A. Taxable income . . . . . . .

Form 8582-CR and enter the total . . .

coal production credit allowed.

B. Tax on line A* . . . . . . . . . . . . . . .

K. Tax attributable to the remaining

special allowance. Subtract line J

Form 8844. Enter on Form 8844,

C. Enter amount from Form

from line I. Enter the result on

8582-CR, line 26 . . . . . . .

line 7, the passive activity

Form 8582-CR, line 35 . . . . . . . . . .

empowerment zone and renewal

D. Subtract line C from line A

*For Form 1040, use the Tax Table, Tax Computation

community employment credit

E. Tax on line D* . . . . . . . . . . . . . . .

Worksheet, or other appropriate method you used to

allowed.

figure your tax. For Form 1041, use the Tax Rate

F. Subtract line E from line B and enter

Schedule, Qualified Dividends Tax Worksheet, or

the result on Form 8582-CR, line 27

Form 8846. Enter on Form 8846,

Schedule D, whichever applies.

line 9, the passive activity credit for

*For Form 1040, use the Tax Table, Tax Computation

Note. When using taxable income in

employer social security and

Worksheet, or other appropriate method you used to

figure your tax. For Form 1041, use the Tax Rate

the above computation, it is not

Medicare taxes paid on certain

Schedule, Qualified Dividends Tax Worksheet, or

necessary to refigure items that are

employee tips.

Schedule D, whichever applies.

-13-

Instructions For Form 8582-Cr - Passive Activity Credit Limitations - 2008 Page 13

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