Instructions For Form 8582 - 2016 (Page 11 of 14) in pdf

column (c) are less than the total losses

Also use Worksheet 7 instead of

See the forms and schedules listed

in column (a), complete column (d).

Worksheet 6 for any activity with two or

under

How To Report Allowed

Losses,

more transactions that are reported on

later.

Column (d). Subtract column (c) from

the same form or schedule but must be

column (a) and enter the results in

separately identified for tax purposes.

Worksheet 7

column (d). Also enter the amounts from

Transactions that must be separately

column (d) of Worksheet 4 in column (a)

Use Worksheet 7 for any activity listed

identified include capital losses that are

of Worksheet 5.

in Worksheet 5 that has losses that are

28% rate losses and those that aren’t.

reported on two or more different forms

Worksheet 5

and schedules or are identified

Note. 28% rate gain or loss includes all

Complete Worksheet 5 if any activities

separately on the same form or

collectibles gains and deductible

have an overall loss in column (e) of

schedule (for example, 28% rate and

long-term losses and section 1202 gain

Worksheet 3 or losses in column (d) of

non-28%-rate capital losses reported on

on the sale of qualified small business

Worksheet 4 (in column (e) of

Form 8949). Worksheet 7 allocates the

stock. See Instructions for Schedule D

Worksheet 1 or column (c) of

allowed and unallowed loss for the

for details.

Worksheet 2 if you did not have to

activity and allocates the allowed loss to

complete Worksheet 4).

the different forms or schedules (or

Worksheet 6

where identified separately on the same

On Worksheet 5, enter the name of

Use Worksheet 6 for any activity listed

form or schedule) used to report the

each activity and the form or schedule

in Worksheet 5 if all the loss from that

losses.

and line number on which the loss will

activity is reported on one form or

be reported. See the

example

for

schedule and no transactions need to

Only losses that would cause a

Worksheet 4. Identify any deduction

be identified separately (as discussed in

difference in tax liability if they were

from Worksheet 2 on a separate line

Worksheet

7, later). Also, see

reported on a different form or schedule

(even if the amount is from an activity

Identification of Disallowed Passive

or are identified separately on the same

also shown on Worksheet 1 or 3) and

Activity Deductions in Pub. 925 for more

form or schedule are kept separate.

add “CRD” after the name of the activity.

information.

Those forms, schedules, and parts are:

Column (a). Enter the amounts, if any,

Schedules C, E, and F.

Example. You will report all the

from column (d) of Worksheet 4 (from

Form 8949 (Parts I and II (28% rate

allowed loss from an activity listed in

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

losses and non-28%-rate losses)).

Worksheet 5 on Schedule E. Use

of Worksheet 2 if you did not have to

Worksheet 6 to determine the allowed

complete Worksheet 4). Also enter the

Note. You must generally make a

loss, even if part of the loss is a current

losses, if any, from column (e) of

separate entry in Form 8949, Part I or

year Schedule E loss and part of it is a

Worksheet 3.

Part II, for each transaction reported.

prior year unallowed Schedule E loss.

See the Instructions for Form 8949.

Column (b). Divide each of the

Forms 4684 (Section B), 4797

On Worksheet 6, enter the name of

individual losses shown in column (a) by

(Parts I and II), and 4835.

each activity and the form or schedule

the total of all the losses in column (a)

and line number on which the loss is

and enter this ratio for each activity in

Use a separate copy of Worksheet 7

reported. See the

example

for

column (b). The total of all the ratios

for each activity for which you have

Worksheet 4. Identify each CRD from

must equal 1.00.

losses reported on two or more different

Worksheet 5 on a separate line and add

Column (c). Complete the following

forms or schedules or which are

“CRD” after the name of the activity.

computation.

identified separately on the same form

Column (a). For each activity entered

or schedule.

in Worksheet 6, enter the net loss plus

A. Enter as a positive amount

the prior year unallowed loss for the

line 4 of Form 8582

On Worksheet 7, enter the form or

. . .

activity. Figure this amount by adding

schedule and line number on the dotted

B. Add lines 10 and 14 of

the losses in columns (b) and (c) of

line above each line 1a (for example,

Form 8582

. . . . . . . . .

Worksheets 1 and 3 or enter the loss

Schedule D, line 12, to report a 28%

C. Subtract line B from line

from column (c) of Worksheet 2.

rate loss from a partnership).

. . . . . . . . . . . . . . .

Column (b). For each activity entered

Line 1a, column (a). Enter the net loss

in Worksheet 6, enter the amount from

plus any prior year unallowed loss from

column (c) of Worksheet 5 for the

Multiply each ratio in column (b) by

the activity that is reported on the same

activity. These are your unallowed

the amount on line C above, and enter

form or, in the case of Form 4797 and

losses for 2016. Keep a record of these

the result in column (c).

Form 8949, the same part.

amounts so the losses can be used to

Worksheets 6 and 7

If you have a Form 8949 28% rate

figure your PAL next year.

loss and a Form 8949 non-28%-rate

These worksheets figure your

Column (c). Subtract column (b) from

loss, see

Example of Form 8949

unallowed and allowed losses for each

column (a). These amounts are the

transactions, later, before completing

activity.

losses allowed for 2016 under the

Worksheet 7.

passive loss rules. Report the amounts

If you have losses from any activity

Line 1b, column (a). Enter any net

in this column on the forms and

that are reported on two or more

income from the activity that is reported

schedules normally used, subject to any

different forms or schedules, use

on the same form or schedule (or on the

further limitations described in

Worksheet 7 instead of Worksheet 6 for

same part of the same form or

Coordination With Other

Limitations,

that activity.

schedule) as the loss on line 1a, column

earlier.

(a).

Instructions for Form 8582 (2016)

Instructions For Form 8582 - 2016 Page 11

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