Instructions For Form 8582cr - Passive Activity Credit Limitations (Page 8 of 16) in pdf

Line 35 computation:

Line 35. Figure the tax attributable to the remaining special allowance as follows:

305,000

A. Taxable income

Tax on line A. For Form 1040, use the Tax Table, Tax Computation Worksheet, or other appropriate method you used to gure your

78,105

tax. For Form 1041, use the Tax Rate Schedules, the Quali ed Dividends Tax Worksheet, or Schedule D, whichever applies

Enter $25,000 ($12,500 if married ling separate return and you and your spouse lived apart at

25,000

all times during the year)

-0-

Enter amount, if any, from Form 8582, line 10

-0-

Enter amount, if any, from Form 8582, line 14

25,000

Subtract lines D and E from line C

280,000

Subtract line F from line A

Tax on line G. For Form 1040, use the Tax Table, Tax Computation Worksheet, or other appropriate method you used to gure your

69,855

tax. For Form 1041, use the Tax Rate Schedules, the Quali ed Dividends Tax Worksheet, or Schedule D, whichever applies

8,250

Subtract line H from line B

-0-

Add lines 16 and 30 of Form 8582-CR and enter the total

8,250

Tax attributable to the remaining special allowance. Subtract line J from line I. Enter the result on Form 8582-CR, line 35

Note: When using taxable income in the above computation, it is not necessary to reﬁgure items that are based on a percentage of adjusted

gross income.

Step 5. Mr. Jones completes Form 8582-CR, Part V.

Part V

Passive Activity Credit Allowed

Passive Activity Credit Allowed. Add lines 6, 16, 30, and 36. See instructions to nd out how to

report the allowed credit on your tax return and how to allocate allowed and unallowed credits if

you have more than one credit or credits from more than one activity. If you have any credits

from a publicly traded partnership, see Publicly Traded Partnerships (PTPs) in the instructions.

8,250

Step 6. After completing Form 8582-CR, Mr. Jones determines his allowed and unallowed credit. Because he has only one type of credit from

a single passive activity, his allowed low-income housing credit for 2011 is the amount on line 37, or $8,250. His unallowed credit of $3,750 is

determined by subtracting the allowed credit on line 37 from the total credit on line 5 ($12,000 – $8,250).

Step 7. Mr. Jones enters the allowed passive activity credit of $8,250 on Form 3800, line 33, and completes the rest of that form according to

the instructions for Form 3800. The unallowed credit of $3,750 is carried forward and used to gure the passive activity credit allowed for 2012.

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Instructions for Form 8582-CR (Rev. 01-2012)

Instructions For Form 8582cr - Passive Activity Credit Limitations Page 8