Instructions For Form 8582 Draft - 2011 Page 10
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13Column (b). Divide each of the
Column (c). Complete the following
amounts so the losses can be used to
individual losses shown in column (a)
computation.
figure your PAL next year.
by the total of all the losses in column
Column (c). Subtract column (b) from
(a) and enter this ratio for each activity
column (a). These are your allowed
A. Enter as a positive amount
in column (b). The total of all the ratios
line 4 of Form 8582 . . . . . . .
losses for 2011. Report the amounts in
in column (b) must equal 1.00.
this column on the forms and schedules
B. Add lines 10 and 14 of
normally used.
Form 8582 . . . . . . . . . . . . .
Column (c). Multiply each ratio in
See the forms and schedules listed
C. Subtract line B from line A . .
column (b) by the amount on line 10 or
under How To Report Allowed Losses,
line 14 of Form 8582, and enter the
later. Also, see Pub. 925 for an
Multiply each ratio in column (b) by
results in column (c). The total of
extensive example of how to report
the amount on line C above, and enter
column (c) must be the same as line 10
passive income and losses on the
the result in column (c).
or line 14 of Form 8582.
forms and schedules.
Worksheets 6 and 7
Worksheet 7
Column (c) total is the same as
These worksheets allocate your
column (a) total. If the total losses in
Use Worksheet 7 for any activity listed
unallowed and allowed losses for each
in Worksheet 5 that has losses that are
column (c) are the same as those in
activity.
reported on two or more different forms
column (a), the losses in Worksheets 1
If you have losses from any activity
and schedules or on different parts of
and 2 are allowed in full and are not
that are reported on two or more
the same form or schedule (for
carried over to Worksheet 5. Report all
different forms or schedules, use
example, 28% rate and non-28%-rate
amounts in columns (a), (b), and (c) of
Worksheet 7 instead of Worksheet 6 for
capital losses reported on Form 8949).
Worksheet 1 and columns (a) and (b) of
that activity.
Worksheet 7 allocates the allowed and
Worksheet 2 on the proper forms and
unallowed loss for the activity and
schedules.
Also use Worksheet 7 instead of
allocates the allowed loss to the
Worksheet 6 for any activity with two or
different forms or schedules (or
Column (c) total is less than
more transactions that are reported on
different parts of the same form or
column (a) total. If the total losses in
the same form or schedule but must be
schedule) used to report the losses.
separately identified for tax purposes.
column (c) are less than the total losses
Transactions that must be separately
in column (a), complete column (d).
Only losses that would cause a
identified include capital losses that are
difference in tax liability if they were
28% rate losses and those that are not.
reported on a different form or schedule
Column (d). Subtract column (c) from
or on different parts of the same form or
Note. 28% rate gain or loss includes
column (a) and enter the results in
schedule are kept separate. Those
all collectibles gains and deductible
column (d). Also enter the amounts
forms, schedules, and parts are:
long-term losses and section 1202 gain
from column (d) of Worksheet 4 in
•
Schedules C, E, and F.
on the sale of qualified small business
column (a) of Worksheet 5.
•
Form 8949(Parts I and II (28% rate
stock. See the instructions for Schedule
losses and non-28%-rate losses)).
D (and Form 8949) for details.
Worksheet 5
Note. You must make a separate
Worksheet 6
Complete Worksheet 5 if any activities
entry in Form 8949, Part I or Part II, for
Use Worksheet 6 for any activity listed
have an overall loss in column (e) of
each transaction reported. See the
in Worksheet 5 if all the loss from that
Worksheet 3 or losses in column (d) of
Instructions for Schedule D (and Form
activity is reported on one form or
Worksheet 4 (in column (e) of
8949).
schedule and no transactions need to
•
Worksheet 1 or column (c) of
Forms 4684 (Section B), 4797
be identified separately (as discussed
Worksheet 2 if you did not have to
(Parts I and II), and 4835.
on this page).
complete Worksheet 4).
Use a separate copy of Worksheet 7
Example. Use Worksheet 6 if all
for each activity for which you have
the loss from an activity is reported on
On Worksheet 5, enter the name of
losses reported on two or more different
Schedule E, even though part of the
each activity and the form or schedule
forms or schedules or different parts of
loss is a current year Schedule E loss
and line number on which the loss will
the same form or schedule.
and part of it is from a Schedule E prior
be reported. See the example for
On Worksheet 7, enter the form or
year unallowed loss.
Worksheet 4. Identify any deduction
schedule and line number on the dotted
from Worksheet 2 on a separate line
On Worksheet 6, enter the name of
line above each line 1a (for example,
(even if the amount is from an activity
each activity and the form or schedule
Schedule D, line 12, to report a 28%
also shown on Worksheet 1 or 3) and
and line number on which the loss is
rate loss from a partnership).
add “CRD” after the name of the
reported. See the example for
Line 1a, column (a). Enter the net
activity.
Worksheet 4. Identify each CRD from
loss plus any prior year unallowed loss
Worksheet 5 on a separate line and
from the activity that is reported on the
add “CRD” after the name of the
Column (a). Enter the amounts, if any,
same form or, in the case of Form 4797
activity.
from column (d) of Worksheet 4 (from
and Form 8949, the same part.
column (e) of Worksheet 1 or column
Column (a). For each activity entered
(c) of Worksheet 2 if you did not have
If you have a Form 8949 28% rate
in Worksheet 6, enter the net loss plus
to complete Worksheet 4). Also enter
loss and a Form 8949 non-28%-rate
the prior year unallowed loss for the
the losses, if any, from column (e) of
loss, see Example of Form 8949
activity. Figure this amount by adding
Worksheet 3.
transactions, later, before completing
the losses in columns (b) and (c) of
Worksheet 7.
Worksheets 1 and 3 or enter the loss
from column (c) of Worksheet 2.
Column (b). Divide each of the
Line 1b, column (a). Enter any net
individual losses shown in column (a)
Column (b). For each activity entered
income from the activity that is reported
by the total of all the losses in column
in Worksheet 6, enter the amount from
on the same form or schedule (or on
(a) and enter this ratio for each activity
column (c) of Worksheet 5 for the
the same part of the same form or
in column (b). The total of all the ratios
activity. These are your unallowed
schedule) as the loss on line 1a,
must equal 1.00.
losses for 2011. Keep a record of these
column (a).
-10-
Instructions for Form 8582 (2011)
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