Instructions For Form 8582 Draft - 2011 Page 9
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Any rental real estate loss allowed to
allowed from a rental real estate
Worksheet 4
real estate professionals (defined under
activity.
Use Worksheet 4 to allocate the special
Activities That Are Not Passive
allowance on line 10 or line 14 of Form
Enter all numbers in Part III as
Activities, earlier),
8582 among your rental real estate
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positive amounts (that is, greater than
Any overall loss from a PTP,
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activities.
zero.)
The taxable amount of social security
and tier 1 railroad retirement benefits,
In the first column of Worksheet 4,
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Deductible contributions to traditional
Married persons filing separate
enter the name of each activity. In the
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individual retirement accounts (IRAs)
returns who lived with their
second column, enter the form or
spouses at any time during the
and section 501(c)(18) pension plans,
CAUTION
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schedule and line number on which the
year are not eligible for the special
The domestic production activities
loss will be reported.
allowance. They must enter -0- on line
deduction,
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The deduction allowed for the
14 and go to line 15.
Example. You receive a Schedule
deductible part of self-employment
K-1 from partnership P that reports
Line 11. Enter $12,500 (reduced by
taxes,
losses from two rental real estate
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the amount, if any, on line 10) on line
The exclusion from income of interest
activities, Activity X and Activity Y. The
11 if you are married filing a separate
from series EE and I U.S. savings
return and you and your spouse lived
losses from partnership P are reported
bonds used to pay higher education
apart at all times during the year.
on line 28A of Schedule E. In the first
expenses,
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two columns of Worksheet 4, enter:
The exclusion of amounts received
under an employer’s adoption
Part IV—Total Losses
Name of Activity
Form or Schedule
assistance program,
Allowed
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The student loan interest deduction,
Activity X
Sch E, line 28A
or
Use Part IV to figure the amount of the
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Activity Y
Sch E, line 28A
The tuition and fees deduction.
PAL (as determined in Part I) allowed
Include in modified adjusted gross
for 2011 from all passive activities.
If the loss from an activity is reported in
income any portfolio income and
Line 16. Use the worksheets on Form
more than one place, identify both
expenses that are clearly and directly
8582 and the following instructions for
locations in the second column (for
allocable to portfolio income. Also
those worksheets to figure the
example, Sch E, line 28A/Form 4797,
include any income that is treated as
unallowed loss to be carried forward
nonpassive income, such as overall
line 2). If you need additional space,
and the allowed loss to report on your
gain from a PTP and net income from
show this information on an attached
forms and schedules for 2011.
an activity or item of property subject to
statement.
the recharacterization of passive
Enter all activities with overall losses
income rules.
Worksheets 1, 2, and 3
from Worksheets 1 and 2 as follows.
When figuring modified adjusted
Worksheets 1 and 3, columns (d) and
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If you entered an amount on line 10,
gross income, include any overall loss
(e), show whether an activity had an
from the entire disposition of a passive
list on Worksheet 4 all activities with an
overall gain or loss. Worksheet 2,
activity (considered a nonpassive loss).
overall loss in column (e) of
column (c), shows the CRDs from
Worksheet 1.
Example. Your adjusted gross
rental real estate activities. If you have
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income on line 37 of Form 1040 is
If you entered an amount on line 14,
activities that show overall gain in
$92,000, and you have taxable social
list on Worksheet 4 all activities with an
column (d) of Worksheet 1 or 3, report
security benefits of $5,500 on line 20b.
all the income and losses listed in
overall loss in column (c) of
Your modified adjusted gross income is
columns (a), (b), and (c) for those
Worksheet 2.
$86,500 ($92,000 – $5,500).
activities on the proper forms and
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If you entered amounts on both lines
schedules.
Line 9. Do not enter more than
10 and 14 of Form 8582, you must
$12,500 on line 9 if you are married
complete two separate Worksheets 4.
If you have activities that show an
filing a separate return and you and
For the second worksheet, you either
overall loss in column (e) of Worksheet
your spouse lived apart at all times
may attach an extra copy of page 2 of
1 or 3 or column (c) of Worksheet 2,
during the year.
Form 8582 or your own schedule in the
you must allocate your allowed loss on
same format as Worksheet 4. On the
Part III—Special
line 16 of Form 8582 to those activities
first Worksheet 4, list all activities with
by completing Worksheets 4, 5, and 6
Allowance for
an overall loss in column (e) of
or 7.
Worksheet 1. On the second
Commercial
Worksheet 4, list all activities with an
Complete Worksheet 4 only if you
overall loss in column (c) of
Revitalization
entered an amount (other than zero) on
line 10 or 14 of Form 8582. Otherwise,
Worksheet 2.
Deductions From Rental
skip Worksheet 4 and complete
Column (a). Enter the overall loss
Worksheet 5 for all activities in
Real Estate Activities
from column (e) of Worksheet 1 or
Worksheets 1 or 3 that have overall
column (c) of Worksheet 2 for each
Use Part III to figure the maximum
losses in column (e) and all activities in
activity.
commercial revitalization deduction
Worksheet 2.
-9-
Instructions for Form 8582 (2011)
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