Instructions For Form 8582-Cr - Passive Activity Credit Limitations

Lines 3a and 3b. Use Worksheet 3 to figure the amounts to enter on lines 3a and 3b for 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 line 3a for the current year

credits and line 3b for prior year unallowed credits for those activities.

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 3c.

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

Totals. Enter on lines 3a and 3b of Form 8582-CR

Lines 4a and 4b. Use Worksheet 4 to figure the amounts to enter on lines 4a and 4b. Use line 4a for all other passive activity credits for

the current year and line 4b for prior year unallowed credits from those activities.

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 4c.

Worksheet 4 for Lines 4a and 4b

(keep for your records)

Current Year

Prior Year

Total Credits

Credits

Unallowed Credits

From

Name of Activity

Form

(a) Credit line 4a

(b) Credit line 4b

Totals. Enter on lines 4a and 4b of Form 8582-CR

in the 2007 Instructions for Form

See Special Allowance for Rental

If you have low-income housing

8582-CR. Enter the prior year

Real Estate Activities beginning on

credits for property placed in service

unallowed credits in column (b) of

page 2.

after 1989, include those credits in

Worksheet 1, 2, 3, or 4, whichever

Worksheet 3 instead of Worksheet 2.

If you are married filing a

applies.

If you held an indirect interest in the

separate return and lived with

property through a partnership, S

your spouse at any time

CAUTION

corporation, or other pass-through

during the year, even if you actively

entity, use Worksheet 3 only if you

Part I—2008 Passive

participated in the rental real estate

also acquired your interest in the

activity, include the credits in

Activity Credits

pass-through entity after 1989.

Worksheet 4, not in Worksheet 1.

Use Part I to combine your credits

Note. You may take credits that

Lines 3a through 3c. Individuals

from passive activities to determine if

arose in a prior tax year (other than

(including limited partners) and

you have a PAC for 2008.

low-income housing and rehabilitation

qualifying estates who had

credits) under the special allowance

low-income housing credits from

If your credits from all passive

only if you actively participated in the

rental real estate activities for

activities exceed the tax attributable

rental real estate activity for both that

property placed in service after 1989

to net passive income, you have a

prior year and this year. If you did not

must include those credits on lines 3a

PAC for 2008. Generally, you have

actively participate for both years,

through 3c. If you held an indirect

net passive income if line 4 of Form

include the credits in Worksheet 4,

interest in the property through a

8582 shows income. For more

not in Worksheet 1.

partnership, S corporation, or other

information, see the instructions for

pass-through entity, use lines 3a

Lines 2a through 2c. Individuals

Form 8582-CR, line 6, on page 10.

through 3c only if you also acquired

(including limited partners) and

your interest in the pass-through

Lines 1a through 1c. Individuals

qualifying estates who had

entity after 1989. Use Worksheet 3 to

and qualifying estates that actively

rehabilitation credits from rental real

figure the amounts to enter on lines

participated in rental real estate

estate activities or low-income

3a and 3b.

activities must include the credits

housing credits for property placed in

(other than rehabilitation credits or

service before 1990 must include the

low-income housing credits) from

Include the credits in

credits from those activities on lines

these activities on lines 1a through

2a through 2c. Use Worksheet 2 to

Worksheet 4, but not in

1c. Use Worksheet 1 to figure the

figure the amounts to enter on lines

Worksheet 2 or 3, if you are

CAUTION

amounts to enter on lines 1a and 1b.

married filing a separate return and

2a and 2b.

-9-

Instructions For Form 8582-Cr - Passive Activity Credit Limitations - 2008 Page 9

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