Passive Activity Loss Limitations

Passive Activity Loss Limitations L OMB No. 1545-1008 ..8582 Department of the TressLai), Interrol Revenue Servce (99) Name(s) shown on return Part I ► See separate Instructions. 201 8 'Attach to Form 1040 or Form 1041. Attachment " Go to wwwirs.gov/FormaSa, for Instructions and the latest Information. Sequence No. 88 Identifying number 2018 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)) 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 la. lb, and lc 1d Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2. column (a) 2a ( ) b Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b) 2b ( ) 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 (bp 36 ( ) c Prior years' unallowed losses (enter the amount from Worksheet 3, column (c)) 3c ( ) 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 ld is a loss, go to Part II. • Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part Ill. • Line 3d is a loss (and lines ld 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. 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. i la 3a 2c 3d 4 5 Enter the smaller of the loss on line 1d 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. Part III 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 11 12 Enter the loss from line 4 1 12 13 Reduce line 12 by the amount on line 10 i 13 14 Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 1 14 Part IV 15 Add the income, if any, on lines la and 3a and enter the total 16 Total losses allowed from all passive activities for 2018. 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. Total Losses Allowed 15 16 Form 8582 (2018) EFTA01222797 Form 8582 (2018) Page 2 Caution: The worksheets must be filed with your tax return. Keep a copy for your records. Worksheet 1 —For Form 8582, Lines la, lb, and lc Lee instructions. Name of activity Current year Prior years Overall gain or loss (a) Net income (line la) (b) Net loss (line lb) (c) Unallowed loss (line 1c) (d) Gain (e) Loss Total. Enter on Form 8582, lines la, lb, and 1c IP Worksheet 2—For Form 8582, Lines 2a and 2b (See instructions.) Name of activity (a) Current year deductions (line 2a) (b) Prior year unallowed deductions (line 2b) (c) Overall loss Total. Enter on Form 8582, lines 2a and 2b ► 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 IP. Worksheet 4—Use this worksheet if an amount is shown on Form 8582 line 10 or 14 (See instructions3 Name of activity Form or schedule and line number to be reported on (see instructions) (a) Loss (b) Ratio (c) Special allowance (d) Subtract column (c) from 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 lir 1.00 Form 8582 12 EFTA01222798 Form 8582 (2018) 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 IP 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): la Net loss plus prior year unallowed loss from form or schedule . IP. b Net income from form or schedule P. c Subtract line lb from line la. If zero or less enter -0- IP Form or schedule and line number to be reported on (see instructions): la Net loss plus prior year unallowed loss from form or schedule . IP. b Net income from form or schedule IP. c Subtract line lb from line la. If zero or less, enter -0- P. Form or schedule and line number to be reported on (see instructions): la Net loss plus prior year unallowed loss from form or schedule . IP. b Net income from form or schedule P. c Subtract line lb from line la. If zero or less, enter -0- llo. I Total I 1.00 Form 6562170181 EFTA01222799