Instructions For Form 8582 Draft - 2011 Page 8
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13See Pub. 925 for examples showing
the activity in column (e). Do not enter
Column (b). Enter the current year net
how to complete the worksheets.
amounts from columns (d) and (e) on
loss for each activity. Enter the total of
Form 8582. These amounts will be
column (b) on line 3b of Form 8582.
If you need additional lines for
used when Form 8582 is completed to
(See the example under Column (b) for
any of the worksheets, you can
TIP
figure the loss allowed for the current
Worksheet 1, earlier.)
either attach copies of page 2 or
year.
Column (c). Enter the unallowed
3, whichever is applicable, or your own
losses for the prior years for each
schedule that is in the same format as
Worksheet 2
activity. You find these amounts on
the worksheet.
Use Worksheet 2 to figure the amount
Worksheet 5, column (c), of your 2010
Worksheet 1
to enter on lines 2a and 2b for
Form 8582. Enter the total of column
commercial revitalization deductions
(c) from your 2011 Worksheet 3 on
Individuals and qualifying estates who
(CRD) from rental real estate activities
line 3c of Form 8582.
actively participated in rental real estate
(see Commercial revitalization
activities must include the income or
Columns (d) and (e). Combine
deduction (CRD), earlier).
loss from those activities in Worksheet
income and losses in columns (a)
1 to figure the amounts to enter on lines
through (c) for each activity, and either
You cannot claim a CRD for a
1a through 1c of Form 8582. Do not
!
enter the overall gain for the activity in
building placed in service after
include any commercial revitalization
column (d) or enter the overall loss for
December 31, 2009.
CAUTION
deductions (CRDs) from these activities
the activity in column (e). Do not enter
Do not include the following amounts
in the net income or loss reported in
amounts from columns (d) and (e) on
on Worksheet 2.
Worksheet 1.
Form 8582. These amounts will be
•
Income or other deductions from the
used when Form 8582 is completed to
Do not enter a prior year unallowed
same activity. Instead, report any net
figure the loss allowed for the current
loss in column (c) of Worksheet 1
income or net loss from the activity,
year.
unless you actively participated in the
except for the CRD, in Worksheet 1 if
activity in both the year the loss arose
you actively participated in the activity
Part II—Special
and the current tax year. If you did not
or in Worksheet 3 if you did not actively
actively participate in both years, enter
Allowance for Rental
participate.
the prior year unallowed loss in column
•
CRDs from passive activities other
Real Estate Activities
(c) of Worksheet 3.
than rental real estate activities.
Married individuals who file
Instead, report these deductions as part
With Active Participation
!
separate returns and lived with
of the net income or loss from the
Use Part II to figure the maximum
their spouses at any time during
passive activity in Worksheet 3.
CAUTION
amount of rental loss allowed if you
the tax year do not qualify under the
Column (a). Enter the current year
have a net loss from a rental real estate
active participation rule and must use
CRD from each rental real estate
activity with active participation.
Worksheet 3 instead of Worksheet 1.
activity. You can claim a current year
Column (a). Enter the current year net
Enter all numbers in Part II as
CRD for 2011, only if you, or a
income from each activity. Enter the
positive amounts (that is, greater than
pass-through entity in which you were a
total of column (a) on line 1a of Form
zero).
partner or shareholder, had a CRD for
8582.
a building placed in service before 2010
Example. Line 5 has a loss of
Example. A Schedule E rental
and elected to ratably claim a deduction
$42,000 (reported as a positive
activity has current year profit of $5,000
for the CRD over a period of 120
amount) and line 9 is $25,000. You
and a Form 4797 gain of $2,000. You
months that included all or part of 2011.
enter $25,000 on line 10 (the smaller of
enter $7,000 in column (a).
Enter the total of column (a) on line 2a
line 5 or line 9, both treated as positive
of Form 8582.
amounts).
Column (b). Enter the current year net
loss for each activity. Do not enter any
Column (b). Enter the prior year
Married persons filing separate
prior year unallowed losses in this
unallowed CRDs for each rental real
!
returns who lived with their
column. Enter the total of column (b) on
estate activity. Enter the total of column
spouses at any time during the
line 1b of Form 8582.
CAUTION
(b) on line 2b of Form 8582.
year are not eligible for the special
If an activity has net income on one
Column (c). Combine the amounts in
allowance. They must enter -0- on line
form or schedule and a net loss on
columns (a) and (b) for each activity
10 and go to line 15.
another form or schedule, report the net
and enter the overall loss for the activity
Line 5. Enter on line 5 the smaller of
amounts separately in columns (a) and
in column (c). These amounts will be
the loss on line 1d or the loss on line 4.
(b) of Worksheet 1.
used when Form 8582 is completed to
Example. Line 1d has a loss of
Example. A Schedule E rental
figure the loss allowed for the current
$3,000, line 2c is zero, and line 3d has
year.
activity has current year income of
a gain of $100. The combined loss on
$1,000 on line 21 of Schedule E and a
Worksheet 3
line 4 is $2,900. You enter $2,900 as a
current year Form 4797 loss of $4,500.
positive number on line 5 (the smaller
You enter $1,000 in column (a) and
Use Worksheet 3 to figure the amounts
of the loss on line 1d or the loss on
($4,500) in column (b).
to enter on lines 3a through 3c for:
line 4).
•
Passive trade or business activities,
Column (c). Enter the prior year
•
Passive rental real estate activities
Line 6. Married persons filing separate
unallowed losses for each activity. You
that do not qualify for the special
returns who lived apart from their
find these amounts on Worksheet 5,
allowance (but do not include CRDs
spouses at all times during the year
column (c), of your 2010 Form 8582.
reported in Worksheet 2), and
must enter $75,000 on line 6 instead of
Enter the total of column (c) from your
•
Rental activities other than rental real
$150,000.
2011 Worksheet 1 on line 1c of Form
estate activities.
8582.
Line 7. To figure modified adjusted
Columns (d) and (e). Combine
Column (a). Enter the current year
gross income, combine all the amounts
income and losses in columns (a)
net income for each activity. Enter the
used to figure adjusted gross income
through (c) for each activity, and either
total of column (a) on line 3a of Form
except do not take into account:
•
enter the overall gain for the activity in
8582. (See the example under Column
Passive income or loss included on
column (d) or enter the overall loss for
(a) for Worksheet 1, earlier.)
Form 8582,
-8-
Instructions for Form 8582 (2011)
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