Instructions For Form 8582cr - Passive Activity Credit Limitations (Page 9 of 16) in pdf

research credit in column (a) of

Otherwise, your prior year

Specific Instructions

Worksheet 4.

unallowed credits are the amounts

shown in column (b) of Worksheet 9

Form 3800, General Business

in the prior year Instructions for Form

Current Year Credits

Credit. Enter the credits from Form

8582-CR. Enter the prior year

3800, line 2, line 23, and line 32, in

Convert any current year qualified

unallowed credits in column (b) of

column (a) of Worksheet 1, 2, 3, or 4.

expenditures into credits before

Worksheet 1, 2, 3, or 4, whichever

Form 8834, Qualified Plug-In

beginning Worksheet 1, 2, 3, or 4. If

applies.

Electric and Electric Vehicle Credit.

the credits are from more than one

See the Instructions for Form 8834

You must adjust a prior year

activity or are of more than one type,

for the amount to enter in column (a)

unallowed credit if you had to

separate the credits by activity and by

of Worksheet 1 or 4.

recapture any part of the

type before making entries in the

CAUTION

credit (for example, due to the early

worksheets.

Prior Year Unallowed

disposition of property) or transfer the

For tax years beginning after

credit to a bankruptcy estate.

Credits

2011, line numbers on the

To figure this year’s PAC, you must

referenced forms may

CAUTION

Part I—Passive Activity

take into account any credits from

change. See the form instructions for

the referenced forms on how to report

passive activities disallowed for prior

Credits

the current year passive activity

years and carried forward to this year.

Use Part I to combine your credits

credit.

If you had only one type of prior

from passive activities to determine if

Example. You have a low-income

year unallowed credit from a single

you have a PAC for the current year.

housing credit from one activity and a

passive activity, figure your prior year

research credit from a different

unallowed credit by subtracting line

If your credits from all passive

activity. Enter the low-income housing

37 of your prior year Form 8582-CR

activities exceed the tax attributable

credit in column (a) of Worksheet 2 or

from line 5 of your prior year Form

to net passive income, you have a

3 and make a separate entry for the

8582-CR.

PAC for the current year. Generally,

Lines 1a and 1b. Use Worksheet 1 to gure the amounts to enter on lines 1a and 1b. Use line 1a for credits from rental real estate

activities with active participation for the current year and line 1b for prior year unallowed credits from rental real estate activities with

active participation in both the prior year in which the credit arose and the current year. See Special Allowance for Rental Real Estate

Activities, earlier, for a de nition of active participation.

For credits from Form 3800, enter the source form (for example, Form 3468 or Form 6765) and “Form 3800, line” followed by the

appropriate line number (2, 23, or 32) in the “From Form” column.

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 1c.

Note: Rehabilitation credits from rental real estate activities and low-income housing credits must be entered in Worksheet 2 or 3,

whichever applies, even if you actively participated in the activity.

Worksheet 1 for Lines 1a and 1b

(keep for your records)

Current Year

Prior Year

Total Credits

Credits

Unallowed Credits

From

Name of Activity

Form

(a) Credit line 1a

(b) Credit line 1b

Totals. Enter on lines 1a and 1b of Form 8582-CR

Lines 2a and 2b. Use Worksheet 2 to gure the amounts to enter on lines 2a and 2b. Use line 2a for rehabilitation credits and

low-income housing credits from rental real estate activities for the current year and line 2b for prior year unallowed credits from those

activities. However, use Worksheet 3 instead of Worksheet 2 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 this worksheet if you do not meet both requirements.

Enter the source form (Form 3468 or Form 8586) and “Form 3800, line” followed by the appropriate line number (2, 23, or 32) in the

“From Form” column.

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 2c.

Worksheet 2 for Lines 2a and 2b

(keep for your records)

Current Year

Prior Year

Total Credits

Credits

Unallowed Credits

From

Name of Activity

Form

(a) Credit line 2a

(b) Credit line 2b

Totals. Enter on lines 2a and 2b of Form 8582-CR

-9-

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

Instructions For Form 8582cr - Passive Activity Credit Limitations Page 9

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