Form 8582 Passive Activity Loss Limitations

2008 Form 8582, Passive Activity Loss Limitations
Purpose: This is the first circulated draft of the Form 8582 for your review and
comments. There are no major changes.
TPCC Meeting: None, but one may be arranged if requested.
Prior Revision: The 2007 Form 8582 is available at:
http://www.irs.gov/pub/irs-pdf/f8582.pdf
Instructions: The 2008 Instructions for Form 8582 will be circulated at a later date. The
2007 instructions are available at:
http://www.irs.gov/pub/irs-pdf/i8582.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and publications
are posted at:
http://taxforms.web.irs.gov/Circulations/index.htm
Comments: Please email, fax, call, or mail any comments by May 30, 2008.
Moneta S. Howland
Tax Forms and Publications
SE:W:CAR:MP:T:I:S
Email: [email protected]
Phone: 202-622-3161
Fax: 202-927-6234

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Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8582, FOLIO 1 of 4
MARGINS: TOP 1⁄ 2 ”, CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 432mm (17") 3 279mm (11") FOLD TO 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8582

Date

Revised proofs
requested

OMB No. 1545-1008

2008 Passive Activity Loss

2008

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Name(s) shown on return

Signature

O.K. to print

Passive Activity Loss Limitations

Department of the Treasury
Internal Revenue Service
(99)

Part I

Action

©

See separate instructions.

Attachment
Sequence No.

Attach to Form 1040 or Form 1041.

88

Identifying number

Caution: Complete Worksheets 1, 2, and 3 on page 2 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 on page 3 of the instructions.)
1a Activities with net income (enter the amount from Worksheet 1,
column (a))
b Activities with net loss (enter the amount from Worksheet 1,
column (b))
c Prior years unallowed losses (enter the amount from Worksheet
1, column (c))
d Combine lines 1a, 1b, and 1c

1a

1b (

)

1c (

)

1d

Commercial Revitalization Deductions From Rental Real Estate Activities
2a (
2a Commercial revitalization deductions from Worksheet 2, column (a)
b Prior year unallowed commercial revitalization deductions from
2b (
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 (b))
c Prior years unallowed losses (enter the amount from Worksheet 3,
column (c))
d Combine lines 3a, 3b, and 3c

)
)

2c (

)

3a
3b (

)

3c (

)
3d

4

Combine lines 1d, 2c, and 3d. If the result is net income or zero, all losses are allowed, including
any prior year unallowed losses entered on line 1c, 2b, or 3c. Do not complete Form 8582.
4
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 1d is zero or more), skip Part II and go to Part III.
● Line 3d is a loss (and lines 1d 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.

Part II
5
6
7

Special Allowance for Rental Real Estate Activities With Active Participation

Note: Enter all numbers in Part II as positive amounts. See page 8 of the instructions for an example.
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 page 8
7
Enter modified adjusted gross income, but not less than zero (see page 8)
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
9
10

8
Subtract line 7 from line 6
Multiply line 8 by 50% (.5). Do not enter more than $25,000. If married filing separately, see page 8
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
11
12
13
14

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 on page 8 of the instructions.
11
12
Enter the loss from line 4
13
Reduce line 12 by the amount on line 10
Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13
14
Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions

Part IV
15
16

9
10

Total Losses Allowed

Add the income, if any, on lines 1a and 3a and enter the total
Total losses allowed from all passive activities for 2008. Add lines 10, 14, and 15. See
page 10 of the instructions to find out how to report the losses on your tax return

For Paperwork Reduction Act Notice, see page 12 of the instructions.

Cat. No. 63704F

15
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Form

8582

(2008)

2
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8582, FOLIO 2 of 4
MARGINS: TOP 1⁄ 2 ", CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 432mm (17") 3 279mm (11") FOLD TO 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Page

Form 8582 (2008)

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 pages 7 and 8 of the instructions.)

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Current year

Name of activity

(a) Net income
(line 1a)

Total. Enter on Form 8582, lines 1a,
©
1b, and 1c

Prior years

(b) Net loss
(line 1b)

Overall gain or loss

(c) Unallowed
loss (line 1c)

(d) Gain

(e) Loss

Worksheet 2—For Form 8582, Lines 2a and 2b (See page 8 of the instructions.)
Name of activity

Total. Enter on Form 8582, lines 2a
©
and 2b

(a) Current year
deductions (line 2a)

(b) Prior year
unallowed deductions (line 2b)

(c) Overall loss

Worksheet 3—For Form 8582, Lines 3a, 3b, and 3c (See page 8 of the instructions.)
Current year

Prior years

Overall gain or loss

Name of activity
(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

Worksheet 4—Use this worksheet if an amount is shown on Form 8582, line 10 or 14 (See page 9 of the instructions.)
Name of activity

Form or schedule
and line number
to be reported on
(see instructions)

(a) Loss

(b) Ratio

©

Total

(c) Special
allowance

(d) Subtract column
(c) from column (a)

1.00

Worksheet 5—Allocation of Unallowed Losses (See page 9 of the instructions.)
Name of activity

Total

Form or schedule
and line number
to be reported on
(see instructions)

©

(a) Loss

(b) Ratio

(c) Unallowed loss

1.00
Form

8582

(2008)

2
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8582, FOLIO 3 of 4 (FOLIO 4 IS BLANK)
MARGINS: TOP 1⁄ 2 ", CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 432mm (17") 3 279mm (11") FOLD TO 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Page

Form 8582 (2008)

3

Worksheet 6—Allowed Losses (See pages 9 and 10 of the instructions.)

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Form or schedule
and line number to
be reported on (see
instructions)

Name of activity

(a) Loss

(b) Unallowed loss

(c) Allowed loss

©

Total

Worksheet 7—Activities With Losses Reported on Two or More Forms or Schedules (See page 10 of the instructions.)
Name of activity:

(a)

Form or schedule and line number
to be reported on (see
instructions):
1a Net loss plus prior year unallowed
©
loss from form or schedule
b Net income
schedule

from

form

or
©

c Subtract line 1b from line 1a. If zero or less, enter -0-

(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
b Net income
schedule

from

form

or
©

c Subtract line 1b from line 1a. If zero or less, enter -0-

©

Form or schedule and line number
to be reported on (see
instructions):
1a Net loss plus prior year unallowed
©
loss from form or schedule
b Net income
schedule

from

form

or
©

c Subtract line 1b from line 1a. If zero or less, enter -0Total

©

©

1.00
Form

Printed on recycled paper

8582

(2008)