Instructions For Form 8582-Cr - Passive Activity Credit Limitations

Form 3800, General Business

Form 8844, Empowerment Zone

Specific Instructions

Credit. Enter the credits from Form

and Renewal Community

3800, line 3, in column (a) of

Employment Credit. Enter the

Worksheet 1, 2, 3, or 4.

credits from Form 8844, line 5, in

Current Year Credits

column (a) of Worksheet 1 or 4.

Form 5884, Work Opportunity

Convert any current year qualified

Form 8846, Credit for Employer

Credit. Enter the credits from Form

expenditures into credits before

Social Security and Medicare

5884, line 5, in column (a) of

Taxes Paid on Certain Employee

beginning Worksheet 1, 2, 3, or 4. If

Worksheet 1 or 4.

Tips. Enter the credits from Form

the credits are from more than one

Form 6478, Alcohol and Cellulosic

8846, line 7, in column (a) of

activity or are of more than one type,

Biofuels Fuels Credit. Enter the

Worksheet 4.

separate the credits by activity or type

credits from Form 6478, line 11, in

before making entries in the

Prior Year Unallowed

column (a) of Worksheet 1 or 4.

worksheets.

Credits

Form 8586, Low Income Housing

Credit. Enter the credits from Form

Example. You have a low-income

To figure this year’s PAC, you must

8586, line 13, in column (a) of

housing credit from one activity and a

take into account any credits from

Worksheet 3.

research credit from a different

passive activities disallowed for prior

activity. Enter the low-income housing

Form 8834, Qualified Electric and

years and carried forward to this year.

credit in column (a) of Worksheet 2 or

Plug-In Electric Vehicle Credit.

If you had only one type of prior

3 and make a separate entry for the

See the Instructions for Form 8834

year unallowed credit from a single

for the amount to enter in column (a)

research credit in column (a) of

passive activity, figure your prior year

of Worksheet 1 or 4.

Worksheet 4.

unallowed credit by subtracting line

37 of your 2007 Form 8582-CR from

Form 8835, Renewable Electricity,

line 5 of your 2007 Form 8582-CR.

Form 3468, Investment Credit.

Refined Coal, and Indian Coal

Enter the credits from Form 3468, line

Production Credit. Enter the credits

Otherwise, your prior year

14, in column (a) of Worksheet 1, 2,

from Form 8835, line 31, in column

unallowed credits are the amounts

or 4.

(a) of Worksheet 1 or 4.

shown in column (b) of Worksheet 9

Lines 1a and 1b. Use Worksheet 1 to figure the amounts to enter on lines 1a and 1b. Use line 1a for credits from rental real estate

activities with active participation for the current year and line 1b for prior year unallowed credits from rental real estate activities with

active participation in both the prior year in which the credit arose and the current year. See Special Allowance for Rental Real Estate

Activities on page 2 for a definition of active participation.

After you complete the worksheet below, enter the totals of columns (a) and (b) on the corresponding lines of Form 8582-CR and then

complete line 1c.

Note. Rehabilitation credits from rental real estate activities and low-income housing credits must be entered in Worksheet 2 or 3,

whichever applies, even if you actively participated in the activity.

Worksheet 1 for Lines 1a and 1b

(keep for your records)

Current Year

Prior Year

Total Credits

Credits

Unallowed Credits

From

Name of Activity

Form

(a) Credit line 1a

(b) Credit line 1b

Totals. Enter on lines 1a and 1b of Form 8582-CR

Lines 2a and 2b. Use Worksheet 2 to figure the amounts to enter on lines 2a and 2b. Use line 2a for rehabilitation credits and

low-income housing credits from rental real estate activities for the current year and line 2b for prior year unallowed credits from those

activities. However, use Worksheet 3 instead of Worksheet 2 if you have any low-income housing credits for property placed in service

after 1989. If you held an indirect interest in the property through a partnership, S corporation, or other pass-through entity, use

Worksheet 3 only if you also acquired your interest in the pass-through entity after 1989. Use this worksheet if you do not meet both

requirements.

After you complete the worksheet below, enter the totals of columns (a) and (b) on the corresponding lines of Form 8582-CR and

then complete line 2c.

Worksheet 2 for Lines 2a and 2b

(keep for your records)

Current Year

Prior Year

Total Credits

Credits

Unallowed Credits

From

Name of Activity

Form

(a) Credit line 2a

(b) Credit line 2b

Totals. Enter on lines 2a and 2b of Form 8582-CR

-8-

Instructions For Form 8582-Cr - Passive Activity Credit Limitations - 2008 Page 8

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