8582-CR Passive Activity Credit Limitations

2007 Form 8582-CR Passive Activity Credit Limitations
Purpose: This is the first circulated draft of the 2007 Form 8582-CR for your
review and comments. There are no major changes.
TPCC Meeting: None, but may be arranged if requested.
Prior Version: The 2006 Form 8582-CR is available at:
http://www.irs.gov/pub/irs-pdf/f8582cr.pdf
Instructions: The 2007 Instructions for Form 8582-CR will be circulated at a
later date. The 2006 instructions are available at:
http://www.irs.gov/pub/irs-pdf/i8582cr.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and
publications are posted at:
http://taxforms.web.irs.gov/draft_products.html
Comments: Please email, fax, call, or mail any comments by July 6, 2007
Moneta Howland
Tax Forms and Publications
SE:W:CAR:MP:T:I:S
Email:[email protected]
Phone:202-622-3161
Fax: 202-622-5022

1
TLS, have you
transmitted all R
text files for this
cycle update?

Date

Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8582-CR, PAGE 1 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216mm (8 ⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8582-CR

Date

Revised proofs
requested

OMB No. 1545-1034

2007

f
o
s
a
7
t
0
f
0
a
2
r
/
D /27
4
0
©

Name(s) shown on return

Signature

O.K. to print

Passive Activity Credit Limitations

Department of the Treasury
Internal Revenue Service

Part I

Action

©

See separate instructions.

Attachment
Sequence No.

Attach to Form 1040 or 1041.

89

Identifying number

2007 Passive Activity Credits

Caution: If you have credits from a publicly traded partnership, see Publicly Traded Partnerships (PTPs) on page 15
of the instructions.
Credits From Rental Real Estate Activities With Active Participation (Other Than Rehabilitation
Credits and Low-Income Housing Credits) (See Lines 1a through 1c on page 9.)
1a Credits from Worksheet 1, column (a)

1a

b Prior year unallowed credits from Worksheet 1, column (b)

1b

c Add lines 1a and 1b
Rehabilitation Credits From Rental Real Estate Activities and Low-Income Housing Credits for
Property Placed in Service Before 1990 (or From Pass-Through Interests Acquired Before 1990)
(See Lines 2a through 2c on page 9.)
2a Credits from Worksheet 2, column (a)

2a

b Prior year unallowed credits from Worksheet 2, column (b)

2b

c Add lines 2a and 2b
Low-Income Housing Credits for Property Placed in Service After 1989 (See Lines 3a through
3c on page 9.)
3a
Credits from Worksheet 3, column (a)
3b
Prior year unallowed credits from Worksheet 3, column (b)
Add lines 3a and 3b
Other Passive Activity Credits (See Lines 4a through 4c on page 9.)
4a
4a Credits from Worksheet 4, column (a)
4b
b Prior year unallowed credits from Worksheet 4, column (b)
c Add lines 4a and 4b
3a
b
c
All

2c

3c

5 Add lines 1c, 2c, 3c, and 4c
6 Enter the tax attributable to net passive income (see page 9)
7 Subtract line 6 from line 5. If line 6 is more than or equal to line 5, enter -0- and see page 10
Note: 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, III, or IV. Instead, go to line 37.

Part II

1c

4c
5
6
7

Special Allowance for Rental Real Estate Activities With Active Participation
Note: Complete this part only if you have an amount on line 1c. Otherwise, go to Part IIl.

8
9

Enter the smaller of line 1c or line 7
Enter $150,000. If married filing separately, see page 10

Enter modified adjusted gross income, but not less than zero (see
page 10). If line 10 is equal to or more than line 9, skip lines 11 through
15 and enter -0- on line 16
11 Subtract line 10 from line 9
12 Multiply line 11 by 50% (.50). Do not enter more than $25,000. If
married filing separately, see page 11
13a Enter the amount, if any, from line 10 of
13a
Form 8582

8
9

10

b Enter the amount, if any, from line 14 of
Form 8582
c Add lines 13a and 13b

10
11
12

13b

14
15

Subtract line 13c from line 12
Enter the tax attributable to the amount on line 14 (see page 11)

16

Enter the smaller of line 8 or line 15

For Paperwork Reduction Act Notice, see page 16 of the instructions.

13c
14
15
16
Cat. No. 64641R

Form

8582-CR

(2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8582-CR, PAGE 2 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 )" 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Page 2
Special Allowance for Rehabilitation Credits From Rental Real Estate Activities and Low-Income Housing
Credits for Property Placed in Service Before 1990 (or From Pass-Through Interests Acquired Before 1990)

Form 8582-CR (2007)

Part III

f
o
s
a
7
t
0
f
0
a
2
r
/
D /27
4
0

Note: Complete this part only if you have an amount on line 2c. Otherwise, go to Part IV.
17 Enter the amount from line 7
18 Enter the amount from line 16
19 Subtract line 18 from line 17. If zero, enter -0- here and on lines 30 and 36, and then go to
Part V
20 Enter the smaller of line 2c or line 19
21 Enter $250,000. If married filing separately, see page 12. (See page 12
21
to find out if you can skip lines 21 through 26.)
22 Enter modified adjusted gross income, but not less than zero. (See
instructions for line 10 on page 10.) If line 22 is equal to or more than
line 21, skip lines 23 through 29 and enter -0- on line 30
23 Subtract line 22 from line 21
24 Multiply line 23 by 50% (.50). Do not enter more than $25,000. If married
filing separately, see page 12
25a Enter the amount, if any, from line 10 of
25a
Form 8582
b Enter the amount, if any, from line 14 of
25b
Form 8582
c Add lines 25a and 25b
26 Subtract line 25c from line 24
27 Enter the tax attributable to the amount on line 26 (see page 12)
28 Enter the amount, if any, from line 18
29 Subtract line 28 from line 27

19
20

22
23
24

25c
26
27
28

29

30 Enter the smaller of line 20 or line 29

Part IV

17
18

30

Special Allowance for Low-Income Housing Credits for Property Placed in Service After 1989
Note: Complete this part only if you have an amount on line 3c. Otherwise, go to Part V.

31
32
33
34
35

If you completed Part III, enter the amount from line 19. Otherwise, subtract line 16 from line 7
Enter the amount from line 30
Subtract line 32 from line 31. If zero, enter -0- here and on line 36
Enter the smaller of line 3c or line 33
Tax attributable to the remaining special allowance (see page 12)

36 Enter the smaller of line 34 or line 35

Part V

36

Passive Activity Credit Allowed

37 Passive Activity Credit Allowed. Add lines 6, 16, 30, and 36. See page 12 to find out how to
report the allowed credit on your tax return and how to allocate allowed and unallowed credits if
you have more than one credit or credits from more than one activity. If you have any credits from
a publicly traded partnership, see Publicly Traded Partnerships (PTPs) on page 15

Part VI

31
32
33
34
35

37

Election To Increase Basis of Credit Property

38 If you disposed of your entire interest in a passive activity or former passive activity in a fully taxable transaction, and you
elect to increase your basis in credit property used in that activity by the unallowed credit that reduced your basis in the
©
property, check this box. See page 16
39 Name of passive activity disposed of ©
40 Description of the credit property for which the election is being made ©
41 Amount of unallowed credit that reduced your basis in the property

©

$
Form

Printed on recycled paper

8582-CR

(2007)