Instructions For Form 8582 - 2016 (Page 9 of 14) in pdf

column. Enter the total of column (b) on

CRD for a building placed in service

rental real estate activities you actively

line 1b of Form 8582.

before 2010 and elected to ratably claim

participated in during 2016.

a deduction for the CRD over a period of

If an activity has net income on one

If you are claiming both the

120 months that included all or part of

form or schedule and a net loss on

premium tax credit (PTC) and

2016. Enter the total of column (a) on

another form or schedule, report the net

self-employed health insurance

line 2a of Form 8582.

CAUTION

amounts separately in columns (a) and

deduction (SEHID) and lines 1d and 4 of

(b) of Worksheet 1.

Column (b). Enter the prior year

Form 8582 are both losses, see

unallowed CRD for each rental real

Self-Employed Health Insurance

Example. A Schedule E rental

estate activity. Enter the total of column

Deduction and PTC in Pub. 974. You

activity has current year income of

(b) on line 2b of Form 8582.

will have to complete worksheets in

$1,000 on line 21 of Schedule E and a

Pub. 974 before you complete Part II of

current year Form 4797 loss of $4,500.

Column (c). Combine the amounts in

Form 8582.

You enter $1,000 in column (a) and

columns (a) and (b) for each activity and

($4,500) in column (b).

enter the overall loss for the activity in

Enter all numbers in Part II as

column (c). These amounts will be used

Column (c). Enter the prior year

positive amounts (that is, greater than

when Form 8582 is completed to figure

unallowed losses for each activity. You

zero).

the loss allowed for the current year.

find these amounts on Worksheet 5,

column (c), of your 2015 Form 8582.

Example. Line 5 has a loss of

Worksheet 3

Enter the total of column (c) from your

$42,000 (reported as a positive amount)

Use Worksheet 3 to figure the amounts

2016 Worksheet 1 on line 1c of Form

and line 9 is $25,000. You enter

to enter on lines 3a through 3c for:

8582.

$25,000 on line 10 (the smaller of line 5

Passive trade or business activities,

or line 9, both treated as positive

Columns (d) and (e). Combine

Passive rental real estate activities

amounts).

income and losses in columns (a)

that do not qualify for the special

through (c) for each activity, and either

Married persons filing separate

allowance (but do not include CRDs

enter the overall gain for the activity in

returns who lived with their

reported in Worksheet 2), and

column (d) or enter the overall loss for

spouses at any time during the

Rental activities other than rental real

CAUTION

the activity in column (e). Don’t enter

year aren’t eligible for the special

estate activities.

amounts from columns (d) and (e) on

allowance. They must enter -0- on

Column (a). Enter the current year net

Form 8582. These amounts will be used

line 10 and go to line 15.

income for each activity. Enter the total

when Form 8582 is completed to figure

of column (a) on line 3a of Form 8582.

Line 5. Enter on line 5 the smaller of

the loss allowed for the current year.

(See the example under

Column (a)

for

the loss on line 1d or the loss on line 4.

Worksheet 2

Worksheet 1, earlier.)

Example. Line 1d has a loss of

Use Worksheet 2 to figure the amount to

Column (b). Enter the current year net

$3,000, line 2c is zero, and line 3d has a

enter on lines 2a and 2b for the

loss for each activity. Enter the total of

gain of $100. The combined loss on

commercial revitalization deduction

column (b) on line 3b of Form 8582.

line 4 is $2,900. You enter $2,900 as a

(CRD) from rental real estate activities

(See the example under

Column (b)

for

positive number on line 5 (the smaller of

(see

Commercial revitalization

Worksheet 1, earlier.)

the loss on line 1d or the loss on

deduction (CRD)

under Special

line 4).

Column (c). Enter the unallowed

Allowance for Rental Real Estate

losses for the prior years for each

Line 6. Married persons filing separate

Activities, earlier).

activity. You find these amounts on

returns who lived apart from their

You cannot claim a CRD for a

Worksheet 5, column (c), of your 2015

spouses at all times during the year

building placed in service after

Form 8582. Enter the total of column (c)

must enter $75,000 on line 6 instead of

December 31, 2009.

from your 2016 Worksheet 3 on

$150,000.

CAUTION

line 3c of Form 8582.

Line 7. To figure modified adjusted

Don’t include the following amounts

Columns (d) and (e). Combine

gross income, combine all the amounts

on Worksheet 2.

income and losses in columns (a)

used to figure adjusted gross income

Income or other deductions from the

through (c) for each activity, and either

except don’t take into account:

same activity. Instead, report any net

enter the overall gain for the activity in

Passive income or loss included on

income or net loss from the activity,

column (d) or enter the overall loss for

Form 8582,

except for the CRD, in Worksheet 1 if

the activity in column (e). Don’t enter

Any rental real estate loss allowed to

you actively participated in the activity or

amounts from columns (d) and (e) on

real estate professionals (defined under

in Worksheet 3 if you did not actively

Form 8582. These amounts will be used

Activities That Are Not Passive

participate.

when Form 8582 is completed to figure

Activities, earlier),

Any CRD from passive activities other

the loss allowed for the current year.

Any overall loss from a PTP,

than rental real estate activities. Instead,

The taxable amount of social security

report these deductions as part of the

Part II—Special Allowance

and tier 1 railroad retirement benefits,

net income or loss from the passive

for Rental Real Estate

Deductible contributions to traditional

activity in Worksheet 3.

individual retirement accounts (IRAs)

Activities With Active

Column (a). Enter the current year

and section 501(c)(18) pension plans,

Participation

CRD from each rental real estate

The domestic production activities

activity. You can generally claim a

Use Part II to figure the maximum

deduction,

current year CRD for 2016, only if you,

amount of rental loss allowed if you

The deduction allowed for the

or a pass-through entity in which you

have an overall loss on line 1d from your

deductible part of self-employment

were a partner or shareholder, had a

taxes,

Instructions for Form 8582 (2016)

Instructions For Form 8582 - 2016 Page 9

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