Passive Activity Loss Limitations

Passive Activity Loss Limitations OMB No. 1545-1008 ..8582 Department of the Treasury Interrol Revenue Service (gel Name(s) shown on return *See separate Instructions. ►Attach to Form 1040 or Form 1041. ► Go to wwwirs.gov1Formilsa, for Instructions and the latest Information 2017 Attachment Sequence No. 88 Identifying number 2017 Passive Activity Loss Caution: Complete Worksheets 1, 2, and 3 before completing Part I. Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions.) la Activities with net income (enter the amount from Worksheet 1, column (a)) la b Activities with net loss (enter the amount from Worksheet 1, column (bp lb ( c Prior years' unallowed losses (enter the amount from Worksheet 1, column (c)) lc ( d Combine lines it 1b, and lc Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2, column (a) b Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b) c Add lines 2a and 2b All Other Passive Activities 3a Activities with net income (enter the amount from Worksheet 3, column (a)) b Activities with net loss (enter the amount from Worksheet 3, column rou c Prior years' unallowed losses (enter the amount from Worksheet 3, column (c)) d Combine lines 3a. 3b and 3c 4 Combine lines ld, 2c, and 3d. If this line is zero or more, stop here and include this form with your return; all losses are allowed, including any prior year unallowed losses entered on line lc, 2b, or 3c. Report the losses on the forms and schedules normally used If line 4 is a loss and: • Line 1d is a loss, go to Part II. • Line 2c is a loss (and line ld is zero or more), skip Part II and go to Part Ill. • Line 3d is a loss (and lines td and 2c are zero or more), skip Parts II and III and go to line 15. Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II or Part III. Instead, go to line 15. ) ld 2a ( 2b 2c 3a 3b ( 3c ( ) 3d Part II 4 Special Allowance for Rental Real Estate Activities With Active Participation Note: Enter all numbers in Part II as positive amounts. See instructions for an example. 5 Enter the smaller of the loss on line td or the loss on line 4 6 Enter $150,000. If married filing separately, see instructions . . 7 Enter modified adjusted gross income, but not less than zero (see instructions) Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9, enter -0- on line 10. Otherwise, go to line 8. 8 Subtract line 7 from line 6 9 Multiply line 8 by 50% (0.50). Do not enter more than $25,000. If married filing separately, see instructions 10 Enter the smaller of line 5 or line 9 If line 2c is a loss, go to Part III. Otherwise, go to line 15. LEM Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities Note: Enter all numbers in Part III as positive amounts. See the example for Part II in the instructions. 11 Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions 12 Enter the loss from line 4 13 Reduce line 12 by the amount on line 10 14 Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 11 12 13 14 Total Losses Allowed 15 Add the income, if any, on lines la and 3a and enter the total 16 Total losses allowed from all passive activities for 2017. Add lines 10, 14, and 15. See instructions to find out how to report the losses on your tax return For Paperwork Reduction Act Notice, see instructions. 16 16 Form 8582 (2017) EFTA01222794 Form 8582 (2017) Page 2 Caution: The worksheets must be filed with your tax return. Keep a copy for your records. Worksheet 1 —For Form 8582, Lines 1a, 1b, and 1c (See instructions. Name of activity Current year Prior years Overall gain or loss (a) Net income (line 1a) (b) Net loss (line 1b) (c) Unallowed loss (line 1c) (d) Gain (e) Loss Total. Enter on Form 8582, lines la, 1b, and 1c IP viromsneet z—ror rorm norm, Lines za ana zo pee insuucuons4 Name of activtty (a) Curren year deductions (line 2a) (b) Prior year unallowed deductions (line 2b) (c) Overall loss Total. Enter on Form 8582, lines 2a and 2b IP Worksheet 3—For Form 8582, Lines 3a, 3b, and 3c (See instructions. Name of activity Current year Prior years Overall gain or loss (a) Net income (line 3a) (b) Net loss (line 3b) (c) Unallowed loss (line 3c) (d) Gain (e) Loss Total. Enter on Form 8582, lines 3a, 3b, and 3c P. Worksheet 4—Use this worksheet if an amount is shown on Form 8582, line 10 or 14iSee instructions.) Name of activity Form or schedule and line number to be reported on (see instructions) (a) Loss (b) Ratio 1 (d) Subtract (c) Special column (c) from allowance column (a) Total IP 1.00 Worksheet 5—Allocation of Unallowed Losses (See instructions. Name of activity Form or schedule and line number to be reported on (see instructions) (a) Loss (b) Ratio (c) Unallowed loss Total IIP 1.00 Form 8582 (2017) EFTA01222795 Form 8582 (2017) Page 3 Worksheet 6—Allowed Losses (See instructions.) Name of activity Form or schedule and line number to be reported on (see instructions) (a) Loss (b) Unallowed loss (c) Allowed loss Total Il• Worksheet 7—Activities With Losses Reported on Two or More Forms or Schedules (See instructions. Name of activity: (a) (b) (c) Ratio (d) Unallowed loss (e) Allowed loss Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed loss from form or schedule llo, b Net income from form or schedule llo, c Subtract line 1 b from line 1a. If zero or less enter -0- Il• Form or schedule and line number to be reported on (see instructions): la Net loss plus prior year unallowed loss from form or schedule . It. b Net income from form or schedule It. c Subtract line 1b from line la. If zero or less, enter -0- lio. Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed loss from form or schedule llo, b Net income from form or schedule llo, c Subtract line 1b from line la. If zero or less, enter -0- Ili- f J Total 1,00 Form 8582 (2017) EFTA01222796