Instructions For Form 8582 - 2016 (Page 10 of 14) in pdf

Part IV—Total Losses

The exclusion from income of interest

Name of Activity

Form or Schedule

from series EE and I U.S. savings bonds

Allowed

used to pay higher education expenses,

Activity X

Sch E, line 28A

Use Part IV to figure the amount of the

The exclusion of amounts received

Activity Y

Sch E, line 28A

losses from all passive activities (as

under an employer's adoption

determined in Part I) allowed for 2016.

assistance program,

The student loan interest deduction,

If the loss from an activity is reported in

Line 16. Use the worksheets on Form

more than one place, identify both

8582 and the following instructions for

The tuition and fees deduction.

locations in the second column (for

those worksheets to figure the

example, Sch E, line 28A/Form 4797,

unallowed loss to be carried forward

Include in modified adjusted gross

line 2). If you need additional space,

and the allowed loss to report on your

income any portfolio income and

show this information on an attached

forms and schedules for 2016.

expenses that are clearly and directly

statement.

allocable to portfolio income. Also

Worksheets 1, 2, and 3

include any income that is treated as

Enter all activities with overall losses

Worksheets 1 and 3, columns (d) and

nonpassive income, such as overall

from Worksheets 1 and 2 as follows.

(e), show whether an activity had an

gain from a PTP and net income from an

If you entered an amount on line 10,

overall gain or loss. Worksheet 2,

activity or item of property subject to the

list on Worksheet 4 all activities with an

column (c), shows the CRDs from rental

recharacterization of passive income

overall loss in column (e) of

real estate activities. If you have

rules.

Worksheet 1.

activities that show overall gain in

When figuring modified adjusted

If you entered an amount on line 14,

column (d) of Worksheet 1 or 3, report

gross income, include any overall loss

list on Worksheet 4 all activities with an

all the income and losses listed in

from the entire disposition of a passive

overall loss in column (c) of

columns (a), (b), and (c) for those

activity (considered a nonpassive loss).

Worksheet 2.

activities on the proper forms and

If you entered amounts on both lines

Example. Your adjusted gross

schedules, including Form 8582.

10 and 14 of Form 8582, you must

income on line 37 of Form 1040 is

If you have activities that show an

complete two separate Worksheets 4.

$92,000, and you have taxable social

overall loss in column (e) of Worksheet

For the second worksheet, you either

security benefits of $5,500 on line 20b.

1 or 3 or column (c) of Worksheet 2, you

may attach an extra copy of page 2 of

Your modified adjusted gross income is

must allocate your allowed loss on

Form 8582 or your own schedule in the

$86,500 ($92,000 – $5,500).

line 16 of Form 8582 to those activities

same format as Worksheet 4. On the

Line 9. Don’t enter more than $12,500

by completing Worksheets 4, 5, and 6 or

first Worksheet 4, list all activities with

on line 9 if you are married filing a

an overall loss in column (e) of

separate return and you and your

Worksheet 1. On the second Worksheet

Complete Worksheet 4 only if you

spouse lived apart at all times during the

4, list all activities with an overall loss in

entered an amount (other than zero) on

year.

column (c) of Worksheet 2.

line 10 or 14 of Form 8582. Otherwise,

Part III—Special Allowance

Column (a). Enter the overall loss from

skip Worksheet 4 and complete

column (e) of Worksheet 1 or column (c)

Worksheet 5 for all activities in

for Commercial

of Worksheet 2 for each activity.

Worksheet 1 or 3 that have overall

Revitalization Deductions

losses in column (e) and all activities in

Column (b). Divide each of the

From Rental Real Estate

Worksheet 2.

individual losses shown in column (a) by

Activities

Worksheet 4

the total of all the losses in column (a)

and enter this ratio for each activity in

Use Part III to figure the maximum

Use Worksheet 4 to allocate the special

column (b). The total of all the ratios in

commercial revitalization deduction

allowance on line 10 or line 14 of Form

column (b) must equal 1.00.

(CRD) allowed from a rental real estate

8582 among your rental real estate

activity.

activities.

Column (c). Multiply each ratio in

column (b) by the amount on line 10 or

Enter all numbers in Part III as

In the first column of Worksheet 4,

line 14 of Form 8582, and enter the

positive amounts (that is, greater than

enter the name of each activity. In the

results in column (c). The total of

zero.)

second column, enter the form or

column (c) must be the same as line 10

schedule and line number on which the

Married persons filing separate

or line 14 of Form 8582.

loss will be reported.

returns who lived with their

Column (c) total is the same as

spouses at any time during the

Example. You receive a

CAUTION

column (a) total. If the total losses in

year aren’t eligible for the special

Schedule K-1 from partnership P that

column (c) are the same as those in

allowance. They must enter -0- on

reports losses from two rental real

column (a), the losses in Worksheets 1

line 14 and go to line 15.

estate activities, Activity X and Activity

and 2 are allowed in full and aren’t

Y. The losses from partnership P are

carried over to Worksheet 5. Report all

Line 11. Enter $12,500 (reduced by the

reported on line 28A of Schedule E. In

amounts in columns (a), (b), and (c) of

amount, if any, on line 10) on line 11 if

the first two columns of Worksheet 4,

Worksheet 1 and columns (a) and (b) of

you are married filing a separate return

enter:

Worksheet 2 on the proper forms and

and you and your spouse lived apart at

schedules.

all times during the year.

Column (c) total is less than

column (a) total. If the total losses in

Instructions for Form 8582 (2016)

Instructions For Form 8582 - 2016 Page 10

Related Articles

Related forms

Related Categories