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2022

Instructions for Form 8582

Department of the Treasury
Internal Revenue Service

Passive Activity Loss Limitations
Section references are to the Internal Revenue
Code unless otherwise noted.

Future Developments

For the latest developments related to
Form 8582 and its instructions, such as
legislation enacted after they were
published, go to IRS.gov/Form8582.

General Instructions
What’s New
Prior year unallowed commercial revitalization deduction (CRD). If you
have prior year unallowed CRDs limited
by the passive loss rules, you may
continue to include them in the
calculations as shown in the Specific
Instructions, beginning with Part
I—2022 Passive Activity Loss, later.

Reminders
Excess business loss limitation. If
you are a noncorporate taxpayer and
have allowable business losses after
taking into account first the at-risk
limitations and then the passive loss
limitations (this form), your losses may
be subject to the excess business loss
limitation. After taking into account all
the other loss limitations, complete
Form 461, Limitation on Business
Losses, to figure the amount of your
excess business loss. See Form 461
and its instructions for details on the
excess business loss limitation.
Changes in rules on grouping and
definition of real property trade or
business. Treasury Decision (T.D.)
9943 revised certain rules in the
regulations under section 469.
Applicable date. The new rules
apply to tax years beginning on or after
March 22, 2021, but taxpayers may
choose to adopt these rules earlier. See
Regulations section 1.469-11(a)(1) and
(4) for additional information on
applicability dates and early adoption. If
you are a calendar year taxpayer, the
new provisions apply to you in calendar
year 2022.
Grouping rules. T.D. 9943 added
Regulations section 1.469-4(d)(6),
which prohibits grouping of trading
activities described in Temporary
Oct 06, 2022

Regulations section 1.469-1T(e)(6)
subject to section 163(d)(5)(A)(ii)
involving a non-passive trade or
business in which the taxpayer does not
materially participate, with any other
activity or activities of the taxpayer. See
Regulations section 1.469-4(d)(6) for
more details.

• Rental activities, regardless of your
participation.

Definition of real property trade or
business. T.D. 9905 and 9943
expanded Regulations section
1.469-9(b)(2) to define several terms
used in determining whether a trade or
business is a real property trade or
business for purposes of section 469(c)
(7)(C). T.D. 9905 added Regulations
sections 1.469-9(b)(2)(ii)(H) and (I)
defining real property operations and
real property management,
respectively. T.D. 9943 added
Regulations sections 1.469-9(b)(2)(ii)
(A) and (B) defining real property
development and real property
redevelopment, respectively.

PALs not allowed in the current year
are carried forward until they’re allowed
either against passive activity income;
against the special allowance, if
applicable; or when you sell or
exchange your entire interest in the
activity in a fully taxable transaction to
an unrelated party.

Reporting prior year unallowed losses. Form 8582 must generally be filed
by taxpayers who have an overall gain
(including any prior year unallowed
losses) from business or rental passive
activities. See Exception under Who
Must File, later.
Regrouping due to Net Investment
Income Tax. You may be able to
regroup your activities if you’re subject
to the Net Investment Income Tax. See
Regrouping Due to Net Investment
Income Tax under Grouping of
Activities, later, for more information.

Purpose of Form

Form 8582 is used by noncorporate
taxpayers to figure the amount of any
passive activity loss (PAL) for the
current tax year and to report the
application of prior year unallowed
PALs.
A PAL occurs when total losses
(including prior year unallowed losses)
from all your passive activities exceed
the total income from all your passive
activities.
Generally, passive activities include
the following.
• Trade or business activities in which
you did not materially participate for the
tax year.
Cat. No. 64294A

PALs can’t be used to offset income
from nonpassive activities. However, a
special allowance for rental real estate
activities may allow some losses even if
the losses exceed passive income.

For more information, see Pub. 925,
Passive Activity and At-Risk Rules.
Note. Corporations subject to the
passive activity rules must use Form
8810, Corporate Passive Activity Loss
and Credit Limitations.

Who Must File

Form 8582 is filed by individuals,
estates, and trusts who have passive
activity deductions (including prior year
unallowed losses). However, you don’t
have to file Form 8582 if you meet the
following exception.

Exception

You actively participated in rental real
estate activities (see Special Allowance
for Rental Real Estate Activities, later),
and you meet all of the following
conditions.
• Rental real estate activities with
active participation were your only
passive activities.
• You have no prior year unallowed
losses from these (or any other passive)
activities.
• Your total loss from the rental real
estate activities wasn’t more than
$25,000 ($12,500 if married filing
separately).
• If you’re married filing separately, you
lived apart from your spouse all year.
• You have no current or prior year
unallowed credits from a passive
activity.
• Your modified adjusted gross income
(see the instructions for line 6, later) was
not more than $100,000 (not more than
$50,000 if married filing separately).

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• You don’t hold any interest in a rental
real estate activity as a limited partner or
as a beneficiary of an estate or a trust.
If all the above conditions are met,
your rental real estate losses are not
limited, and you don’t need to complete
Form 8582. Enter losses reported on
Schedule E (Form 1040), Supplemental
Income and Loss, Part I, line 21, on
Schedule E (Form 1040), Part l, line 22.
For losses from a partnership or an S
corporation, enter the amount of the
allowable loss from Schedule K-1 on
Schedule E (Form 1040), Part II, column
(g). Enter losses reported on line 32 of
Form 4835, Farm Rental Income and
Expenses, on Form 4835, line 34c.

Coordination With Other
Limitations

Generally, PALs are subject to other
limitations (for example, basis and
at-risk limitations) before they’re subject
to the passive loss limitations. Once a
loss becomes allowable under these
other limitations, you must determine
whether the loss is limited under the
passive loss rules. See Form 6198,
At-Risk Limitations, for details on the
at-risk rules. Also, capital losses that are
allowable under the passive loss rules
may be limited under the capital loss
limitations of section 1211. Percentage
depletion deductions that are allowable
under the passive loss rules may be
limited under section 613A(d).
If you have allowable business
losses after taking into account the loss
limitations discussed above and
computing the allowable passive losses
on this form, your losses may be subject
to the excess business loss limitation.
Complete Form 461 to figure the
amount of your excess business loss.
Any disallowed loss resulting from this
limitation will be treated as a net
operating loss (NOL) that must be
carried forward and deducted in a
subsequent year. See Form 461 and its
instructions for details on the excess
business loss limitation.

Definitions

Except as otherwise indicated, the
following terms in these instructions are
defined as shown below.

Net income. This is the excess of
current year income over current year
deductions from the activity. This
includes any current year gains or
losses from the disposition of assets or
an interest in the activity.
Net loss. This is the excess of current
year deductions over current year

income from the activity. This includes
any current year gains or losses from
the disposition of assets or an interest in
the activity.
Overall gain. This is the excess of the
“net income” from the activity over the
prior year unallowed losses from the
activity.
Overall loss. This is (a) the excess of
the prior year unallowed losses from the
activity over the “net income” from the
activity, or (b) the prior year unallowed
losses from the activity plus the “net
loss” from the activity.
Prior year unallowed losses. These
are the losses from an activity that were
disallowed under the PAL limitations in
a prior year and carried forward to the
tax year under section 469(b). See
Regulations section 1.469-1(f)(4) and
Pub. 925.

Activities That Are Not
Passive Activities

The following aren’t passive activities.
1. Trade or business activities in
which you materially participated for the
tax year.
2. Any rental real estate activity in
which you materially participated if you
were a “real estate professional” for the
tax year. You were a real estate
professional only if:
a. More than half of the personal
services you performed in trades or
businesses during the tax year were
performed in real property trades or
businesses in which you materially
participated, and
b. You performed more than 750
hours of services during the tax year in
real property trades or businesses in
which you materially participated.
For purposes of whether you
materially participated under item (2),
each interest in rental real estate is a
separate activity, unless you elect to
treat all interests in rental real estate as
one activity. For details on making this
election, see the Instructions for
Schedule E (Form 1040).
If you’re married filing jointly, one
spouse must separately meet both
(2)(a) and (2)(b) without taking into
account services performed by the other
spouse.
A real property trade or business is
any real property development,
redevelopment, construction,
reconstruction, acquisition, conversion,
rental, operation, management, leasing,
or brokerage trade or business.
-2-

Real property includes land,
buildings, and other inherently
permanent structures permanently
affixed to land. Any interest in real
property, including fee ownership,
co-ownership, leasehold, option, or
similar interest is real property. Tenant
improvements to land, buildings, or
other structures that are inherently
permanent or otherwise classified as
real property are real property for this
purpose. See Regulations section
1.469-9(b)(2) for more definitions and
information about determining whether
a trade or business is a real property
trade or business.
For examples of the determination of
whether a trade or business is a real
property trade or business, see
Regulations section 1.469-9(b)(2)(iii).
Services you performed as an
employee aren’t treated as performed in
a real property trade or business unless
you owned more than 5% of the stock
(or more than 5% of the capital or profits
interest) in the employer.
Note. If a rental real estate activity isn’t
a passive activity for the current year,
any prior year unallowed loss is treated
as a loss from a former passive activity.
See Former Passive Activities, later.
3. A working interest in an oil or gas
well. Your working interest must be held
directly or through an entity that doesn’t
limit your liability (such as a general
partner interest in a partnership). In this
case, it doesn’t matter whether you
materially participated in the activity for
the tax year.
If, however, your liability was limited
for part of the year (for example, you
converted your general partner interest
to a limited partner interest during the
year), some of your income and losses
from the working interest may be treated
as passive activity gross income and
passive activity deductions. See
Temporary Regulations section
1.469-1T(e)(4)(ii).
4. The rental of a dwelling unit you
used as a residence if section 280A(c)
(5) applies. This section applies if you
rented out a dwelling unit that you also
used as a home during the year for a
number of days that exceeds the
greater of 14 days or 10% of the number
of days during the year that the home
was rented at a fair rental.
5. An activity of trading personal
property for the account of owners of
interests in the activity. For purposes of
this rule, personal property means
property that’s actively traded, such as
stocks, bonds, and other securities. See
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Temporary Regulations section
1.469-1T(e)(6) for more details.
Generally, income and losses from
these activities aren’t entered on Form
8582. However, losses from these
activities may be subject to limitations
other than the passive loss rules.

Trade or Business
Activities

A trade or business activity is an activity
(other than a rental activity or an activity
treated as incidental to an activity of
holding property for investment) that:
1. Involves the conduct of a trade or
business (within the meaning of section
162),
2. Is conducted in anticipation of
starting a trade or business, or
3. Involves research or experimental
expenditures deductible under section
174.
Trade or business activities are
generally reported on Schedule C (Form
1040), Profit or Loss From Business
(Sole Proprietorship); Schedule F (Form
1040), Profit or Loss From Farming; or
in Part II or III of Schedule E (Form
1040). For trade or business activities
that are significant participation passive
activities (defined in item 4 under Tests
for individuals, later), see Pub. 925 for
how to report their income or losses.

Rental Activities

A rental activity is a passive activity
even if you materially participated in the
activity (unless it’s a rental real estate
activity in which you materially
participated and you were a real estate
professional).
An activity is a rental activity if
tangible property (real or personal) is
used by customers or held for use by
customers and the gross income (or
expected gross income) from the
activity represents amounts paid (or to
be paid) mainly for the use of the
property. It doesn’t matter whether the
use is under a lease, a service contract,
or some other arrangement.
However, if you meet any of the five
exceptions below, the rental of the
property isn’t treated as a rental activity.
See Reporting Income and Losses
From the Activities, later, if you meet
any of the exceptions.

Exceptions

An activity is not a rental activity if any of
the following apply.
1. The average period of customer
use is:

Instructions for Form 8582 (2022)

a. 7 days or less, or
b. 30 days or less and significant
personal services were provided in
making the rental property available for
customer use.
Figure the average period of
customer use for a class of property by
dividing the total number of days in all
rental periods by the number of rentals
during the tax year. If the activity
involves renting more than one class of
property, multiply the average period of
customer use of each class by the ratio
of the gross rental income from that
class to the activity's total gross rental
income. The activity's average period of
customer use equals the sum of these
class-by-class average periods
weighted by gross income. See
Regulations section 1.469-1(e)(3)(iii).
Significant personal services include
only services performed by individuals.
To determine if personal services are
significant, all relevant facts and
circumstances are taken into
consideration, including the frequency
of the services, the type and amount of
labor required to perform the services,
and the value of the services relative to
the amount charged for use of the
property.
2. Extraordinary personal services
were provided in making the rental
property available for customer use.
This applies only if the services are
performed by individuals and the
customers' use of the property is
incidental to their receipt of the services.
3. Rental of the property is
incidental to a nonrental activity.
The rental of property is incidental to
an activity of holding property for
investment if the main purpose of
holding the property is to realize a gain
from its appreciation and the gross
rental income is less than 2% of the
smaller of the unadjusted basis or the
fair market value (FMV) of the property.
Unadjusted basis is the cost of the
property without regard to depreciation
deductions or any other basis
adjustment described in section 1016.
The rental of property is incidental to
a trade or business activity if:
a. You own an interest in the trade
or business activity during the tax year,
b. The rental property was mainly
used in the trade or business activity
during the tax year or during at least 2 of
the 5 preceding tax years, and
c. The gross rental income from the
property is less than 2% of the smaller
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of the unadjusted basis or the FMV of
the property.
Lodging provided for the employer's
convenience to an employee or the
employee's spouse or dependents is
incidental to the activity or activities in
which the employee performs services.
4. You customarily make the rental
property available during defined
business hours for nonexclusive use by
various customers.
5. You provide property for use in a
nonrental activity of a partnership,
S corporation, or a joint venture in your
capacity as an owner of an interest in
the partnership, S corporation, or joint
venture.
Example. If a partner contributes the
use of property to a partnership, none of
the partner's distributive share of
partnership income is income from a
rental activity unless the partnership is
engaged in a rental activity.
Also, a partner's gross income from a
guaranteed payment under section
707(c) isn’t income from a rental activity.
The determination of whether the
property used in the activity is provided
in the partner's capacity as an owner of
an interest in the partnership is made on
the basis of all the facts and
circumstances.

Reporting Income and Losses
From the Activities

If an activity meets any of the five
exceptions listed above, it’s not a rental
activity. You must then determine:
1. Whether your rental of the
property is a trade or business activity
(see Trade or Business Activities,
earlier), and, if so,
2. Whether you materially
participated in the activity for the tax
year (see Material Participation, later).
If the activity is a trade or business
activity in which you didn’t materially
participate, enter the income and losses
from the activity on Part V.
If the activity is a trade or business
activity in which you did materially
participate, report any income or loss
from the activity on the forms or
schedules normally used.
If the rental activity didn’t meet any of
the five exceptions, it’s generally a
passive activity. However, special rules
apply if you conduct the rental activity
through a publicly traded partnership
(PTP) or if any of the rules described
under Recharacterization of Passive
Income, later, apply. Also see the PTP
rules, later.

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If none of the special rules apply,
enter the income and losses from the
passive rental activity on Parts IV or V.
See the instructions for Parts IV and V
for details.

Special Allowance for
Rental Real Estate
Activities
Active participation. If you actively
participated in a passive rental real
estate activity, you may be able to
deduct up to $25,000 of loss from the
activity from your nonpassive income.
This special allowance is an exception
to the general rule disallowing losses in
excess of income from passive
activities.
The special allowance isn’t available
if you were married, are filing a separate
return for the year, and lived with your
spouse at any time during the year.
Only an individual, a qualifying
estate, or a qualified revocable trust that
made an election to treat the trust as
part of the decedent's estate may
actively participate in a rental real estate
activity. Unless future regulations
provide an exception, limited partners
are not treated as actively participating
in a partnership's rental real estate
activity.
A qualifying estate is the estate of a
decedent for tax years ending less than
2 years after the date of the decedent's
death if the decedent would’ve satisfied
the active participation requirements for
the rental real estate activity for the tax
year the decedent died.
A qualified revocable trust may elect
to be treated as part of a decedent's
estate for purposes of the special
allowance for active participation in
rental real estate activities. The election
must be made by both the executor (if
any) of the decedent's estate and the
trustee of the revocable trust. For
details, see Regulations section
1.645-1. To make this election, see the
instructions on Form 8855, Election To
Treat a Qualified Revocable Trust as
Part of an Estate.
You aren’t considered to actively
participate in a rental real estate activity
if at any time during the tax year your
interest (including your spouse's
interest) in the activity was less than
10% (by value) of all interests in the
activity.
Active participation is a less stringent
requirement than material participation
(see Material Participation, later). You
may be treated as actively participating

if, for example, you participated in
making management decisions or
arranged for others to provide services
(such as repairs) in a significant and
bona fide sense. Management
decisions that may count as active
participation include:
• Approving new tenants,
• Deciding on rental terms,
• Approving capital or repair
expenditures, and
• Other similar decisions.
The maximum special allowance is:

• $25,000 for single individuals and

married individuals filing a joint return for
the tax year.
• $12,500 for married individuals who
file separate returns for the tax year and
lived apart from their spouses at all
times during the tax year.
• $25,000 for a qualifying estate,
reduced by the special allowance for
which the surviving spouse qualified.
Modified adjusted gross income limitation. If your modified adjusted gross
income (see the instructions for line 6,
later) is $100,000 or less ($50,000 or
less if married filing separately), your
loss is deductible up to the amount of
the maximum special allowance
referred to in the preceding paragraph.
If your modified adjusted gross
income is more than $100,000 ($50,000
if married filing separately) but less than
$150,000 ($75,000 if married filing
separately), your special allowance is
limited to 50% of the difference between
$150,000 ($75,000 if married filing
separately) and your modified adjusted
gross income.
Generally, if your modified adjusted
gross income is $150,000 or more
($75,000 or more if married filing
separately), there is no special
allowance.
If you qualify under the active
participation rules, use Part IV. See the
instructions for Part IV, later.

Material Participation

For the material participation tests listed
below, participation generally includes
any work done in connection with an
activity if you owned an interest in the
activity at the time you did the work. The
capacity in which you did the work
doesn’t matter. However, work isn’t
participation if:
• It isn’t work that an owner would
customarily do in the same type of
activity, and
• One of your main reasons for doing
the work was to avoid the disallowance
-4-

of losses or credits from the activity
under the passive activity rules.
Proof of participation. You may prove
your participation in an activity by any
reasonable means. You don’t have to
maintain contemporaneous daily time
reports, logs, or similar documents if
you can establish your participation by
other reasonable means. For this
purpose, reasonable means include, but
are not limited to, identifying services
performed over a period of time and the
approximate number of hours spent
performing the services during that
period, based on appointment books,
calendars, or narrative summaries.
Tests for individuals. You materially
participated for the tax year in an activity
if you satisfy at least one of the following
tests.
1. You participated in the activity for
more than 500 hours.
2. Your participation in the activity
for the tax year was substantially all of
the participation in the activity of all
individuals (including individuals who
didn’t own any interest in the activity) for
the year.
3. You participated in the activity for
more than 100 hours during the tax
year, and you participated at least as
much as any other individual (including
individuals who didn’t own any interest
in the activity) for the year.
4. The activity is a significant
participation activity for the tax year, and
you participated in all significant
participation activities during the year for
more than 500 hours.
A significant participation activity is
any trade or business activity in which
you participated for more than 100
hours during the year and in which you
didn’t materially participate under any of
the material participation tests (other
than this fourth test).
5. You materially participated in the
activity (other than by meeting this fifth
test) for any 5 (whether or not
consecutive) of the 10 immediately
preceding tax years.
6. The activity is a personal service
activity in which you materially
participated for any 3 (whether or not
consecutive) preceding tax years.
An activity is a personal service
activity if it involves the performance of
personal services in the fields of health,
law, engineering, architecture,
accounting, actuarial science,
performing arts, consulting, or in any
other trade or business in which capital
isn’t a material income-producing factor.
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7. Based on all the facts and
circumstances, you participated in the
activity on a regular, continuous, and
substantial basis during the tax year.
You didn’t materially participate in the
activity under this seventh test,
however, if you participated in the
activity for 100 hours or less during the
tax year.
Your participation in managing the
activity doesn’t count in determining
whether you materially participated
under this test if:
a. Any person (except you) received
compensation for performing services in
the management of the activity, or
b. Any individual spent more hours
during the tax year performing services
in the management of the activity than
you did (regardless of whether the
individual was compensated for the
management services).
Test for a spouse. Participation by
your spouse during the tax year in an
activity you own may be counted as
your participation in the activity even if
your spouse didn’t own an interest in the
activity and whether or not you and your
spouse file a joint return for the tax year.
Tests for investors. Work done as an
investor in an activity isn’t treated as
participation unless you were directly
involved in the day-to-day management
or operations of the activity. For
purposes of this test, work done as an
investor includes the following.
1. Studying and reviewing financial
statements or reports on operations of
the activity.
2. Preparing or compiling
summaries or analyses of the finances
or operations of the activity for your own
use.
3. Monitoring the finances or
operations of the activity in a
nonmanagerial capacity.
Special rules for limited partners. If
you were a limited partner in an activity,
you generally didn’t materially
participate in the activity. You did
materially participate in the activity,
however, if you met material
participation test 1, 5, or 6 under Tests
for individuals, earlier, for the tax year.
However, for purposes of the
material participation tests, you aren’t
treated as a limited partner if you also
were a general partner in the
partnership at all times during the
partnership's tax year ending with or
within your tax year (or, if shorter, during
the portion of the partnership's tax year
Instructions for Form 8582 (2022)

in which you directly or indirectly owned
your limited partner interest).
Special rules for certain retired or
disabled farmers and surviving
spouses of farmers. Certain retired or
disabled farmers and surviving spouses
of farmers are treated as materially
participating in a farming activity if the
real property used in the activity would
meet the estate tax rules for special
valuation of farm property passed from
a qualifying decedent. See Temporary
Regulations section 1.469-5T(h)(2).
Estates and trusts. The PAL
limitations apply in figuring the
distributable net income and taxable
income of an estate or trust. The rules
for determining material participation for
this purpose haven’t yet been issued.

Grouping of Activities

Generally, one or more trade or
business activities or rental activities
may be treated as a single activity if the
activities make up an appropriate
economic unit for the measurement of
gain or loss under the passive activity
rules.
Whether activities make up an
appropriate economic unit depends on
all the relevant facts and circumstances.
The factors given the greatest weight in
determining whether activities make up
an appropriate economic unit are:
1. Similarities and differences in
types of trades or businesses,
2. The extent of common control,
3. The extent of common
ownership,
4. Geographical location, and
5. Interdependencies between or
among the activities.

Example. You have a significant
ownership interest in a bakery and a
movie theater in Baltimore and in a
bakery and a movie theater in
Philadelphia. Depending on all the
relevant facts and circumstances, there
may be more than one reasonable
method for grouping your activities. For
instance, the following groupings may or
may not be permissible.
• A single activity.
• A movie theater activity and a bakery
activity.
• A Baltimore activity and a
Philadelphia activity.
• Four separate activities.
Once you choose a grouping under
these rules, you must continue using
that grouping in later tax years unless
it’s determined that the original grouping
was clearly inappropriate or a material
-5-

change in the facts and circumstances
makes it clearly inappropriate.
The IRS may regroup your activities if
your grouping fails to reflect one or more
appropriate economic units and one of
the primary purposes of your grouping is
to avoid the passive activity limitations.
Limitation on grouping certain activities. The following activities may not be
grouped together.
1. A rental activity with a trade or
business activity unless the activities
being grouped together make up an
appropriate economic unit and:
a. The rental activity is insubstantial
relative to the trade or business activity
or vice versa, or
b. Each owner of the trade or
business activity has the same
proportionate ownership interest in the
rental activity. If so, the portion of the
rental activity involving the rental of
property used in the trade or business
activity may be grouped with the trade
or business activity.
2. An activity involving the rental of
real property with an activity involving
the rental of personal property (except
personal property provided in
connection with the real property or vice
versa).
3. Any activity with another activity
in a different type of business and in
which you hold an interest as a limited
partner if that other activity engages in
holding, producing, or distributing
motion picture films or videotapes;
farming; leasing section 1245 property;
or exploring for or exploiting oil and gas
resources or geothermal deposits.
4. Any trading activities in which you
don't materially participate. A trading
activity is an activity of trading in
personal property. For this purpose,
personal property is any personal
property that is actively traded, for
example, financial securities. A taxpayer
who does not materially participate in a
trading activity is prohibited from
grouping the activity with any other
activity, including any other trading
activity. The prohibition on grouping is
effective for taxable years beginning on
or after March 22, 2021. If you are a
calendar year taxpayer, the new
provisions apply to you in calendar year
2022.
Activities conducted through partnerships, S corporations, and C corporations subject to section 469.
Once a partnership or corporation
determines its activities under these
rules, a partner or shareholder may use

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these rules to group those activities
with:
• Each other,
• Activities conducted directly by the
partner or shareholder, or
• Activities conducted through other
partnerships and corporations.
A partner or shareholder may not
treat as separate activities those
activities grouped together by the
partnership or corporation.

Regrouping Due to Net
Investment Income Tax

You may be able to regroup your
activities, as described below, if you’re
subject to the Net Investment Income
Tax (NIIT) for the first time. For detailed
information, see Regulations section
1.469-11(b)(3)(iv).

Regrouping on an original return.
Under the NIIT fresh start election, you
may regroup for the first tax year you’re
subject to the NIIT (without regard to the
effect of regrouping). You may regroup
only once under this election and that
regrouping will apply to the tax year for
which you regroup and all future tax
years. You’re eligible to regroup if:
1. You weren’t previously subject to
the NIIT;
2. The amount you would have
entered on Form 8960, line 12, without
the regrouping, would have been
greater than zero; and
3. The amount you would have
entered on Form 8960, line 13, without
the regrouping, would have been
greater than the amount you would have
entered on Form 8960, line 14, without
the regrouping.
Regrouping on an amended return.
You may regroup your activities on an
amended tax return, but only if you
weren’t subject to the NIIT on your
original return (or previously amended
return). You’re eligible if:
1. You weren’t previously subject to
the NIIT for the tax year for which you’re
filing an amended return or any prior tax
year;
2. The changes on the amended
return cause you to be subject to the
NIIT for the first time beginning in the
taxable year for which you’re amending
the return;
3. The limitation period for
assessments under section 6501 hasn’t
ended;
4. The changes on your amended
return cause the amount on Form 8960,
line 12, of your amended return to be
greater than zero; and

5. The changes on your amended
return cause the amount on Form 8960,
line 13, of your amended return to be
greater than the amount entered on
Form 8960, line 14.
This rule applies equally to changes
to modified adjusted gross income or
net investment income upon an IRS
examination.
Manner of regrouping. If you regroup
your activities under this rule, you must
attach to your original or amended
return, as applicable, a statement that
satisfies the requirements described in
Regrouping under Disclosure
Requirement next.

Disclosure Requirement

For tax years beginning after January
24, 2010, the following disclosure
requirements for groupings apply.
You’re required to report certain
changes to your groupings that occur
during the tax year to the IRS. If you fail
to report these changes, each trade or
business activity or rental activity will be
treated as a separate activity. You’ll be
considered to have made a timely
disclosure if you filed all affected
income tax returns consistent with the
claimed grouping and make the
required disclosure on the income tax
return for the year in which you first
discovered the failure to disclose. If the
IRS discovered the failure to disclose,
you must have reasonable cause for not
making the required disclosure. For
more information on disclosure
requirements, see Revenue Procedure
2010-13, available at IRS.gov/irb/
2010-04_IRB#RP-2010-13.
New grouping. You must file a written
statement with your original income tax
return for the first tax year in which two
or more activities are originally grouped
into a single activity. The statement
must provide the names, addresses,
and employer identification numbers
(EINs), if applicable, for the activities
being grouped as a single activity. In
addition, the statement must contain a
declaration that the grouped activities
make up an appropriate economic unit
for the measurement of gain or loss
under the passive activity rules.
Addition to an existing grouping.
You must file a written statement with
your original income tax return for the
tax year in which you add a new activity
to an existing group. The statement
must provide the name, address, and
EIN, if applicable, for the activity that’s
being added and for the activities in the
existing group. In addition, the
statement must contain a declaration
-6-

that the activities make up an
appropriate economic unit for the
measurement of gain or loss under the
passive activity rules.
Regrouping. You must file a written
statement with your original income tax
return for the tax year in which you
regroup the activities. The statement
must provide the names, addresses,
and EINs, if applicable, for the activities
that are being regrouped. If two or more
activities are being regrouped into a
single activity, the statement must
contain a declaration that the regrouped
activities make up an appropriate
economic unit for the measurement of
gain or loss under the passive activity
rules. In addition, the statement must
contain an explanation of the material
change in the facts and circumstances
that made the original grouping clearly
inappropriate.

Passive Activity Income
and Deductions

Take into account only passive activity
income and passive activity deductions
to figure your net income or net loss
from all passive activities or any passive
activity.
If your passive activity is reported on
Schedule C, E, or F, and the activity has
no prior year unallowed losses or any
gain or loss from the disposition of
assets or an interest in the activity, take
into account only the passive activity
income and passive activity deductions
from the activity to figure the amount to
enter on Form 8582, including all
applicable Parts IV through IX.
If you own an interest in a passive
activity through a partnership or an
S corporation, the partnership or
S corporation will generally provide you
with the net income or net loss from the
passive activity. If, however, the
partnership or S corporation must state
an item of gross income or deduction
separately to you, and the gross income
or deduction is passive activity gross
income or a passive activity deduction
(respectively), include that amount in
the net income or net loss entered on
Form 8582, including all applicable
Parts IV through IX.
The partnership or S
corporation doesn’t have a
CAUTION record of your prior year
unallowed losses from the passive
activities of the partnership or S
corporation. If you had prior year
unallowed losses from these activities,

!

Instructions for Form 8582 (2022)

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they can be found in column (c) of your
2021 Part VIII.

Passive Activity Income

To figure your overall gain or loss from
all passive activities or any passive
activity, take into account only passive
activity income. Don’t enter income that
isn’t passive activity income on Form
8582.
Passive activity income includes all
income from passive activities (with
certain exceptions described in
Temporary Regulations section
1.469-2T(c)(2) and Regulations section
1.469-2(c)(2)), including gain from the
disposition of an interest in a passive
activity and from the disposition of
property used in a passive activity at the
time of the disposition.
Passive activity income doesn’t
include the following.
• Income from an activity that isn’t a
passive activity.
• Portfolio income, including interest
(other than self-charged interest treated
as passive activity income, discussed
later), dividends, annuities, and royalties
not derived in the ordinary course of a
trade or business, and gain or loss from
the disposition of property that produces
portfolio income or is held for
investment (see section 163(d)(5)). See
Temporary Regulations section
1.469-2T(c)(3).
• Alaska Permanent Fund dividends.
• Personal service income, including
salaries, wages, commissions,
self-employment income from trade or
business activities in which you
materially participated for the tax year,
deferred compensation, taxable social
security and other retirement benefits,
and payments from partnerships to
partners for personal services. See
Temporary Regulations section
1.469-2T(c)(4).
• Income from positive section 481
adjustments allocated to activities other
than passive activities. See Temporary
Regulations section 1.469-2T(c)(5).
• Income or gain from investments of
working capital.
• Income from an oil or gas property if
you treated any loss from a working
interest in the property for any tax year
beginning after 1986 as a nonpassive
loss under the rule excluding working
interests in oil and gas wells from
passive activities (see item 3 under
Activities That Are Not Passive
Activities, earlier). See Regulations
section 1.469-2(c)(6).
• Any income from intangible property
if your personal efforts significantly
Instructions for Form 8582 (2022)

contributed to the creation of the
property.
• Any income treated as not from a
passive activity under Temporary
Regulations section 1.469-2T(f) and
Regulations section 1.469-2(f). See
Recharacterization of Passive Income,
later.
• Overall gain from any interest in a
PTP (see item 2 under Passive activity
loss rules for partners in PTPs, later).
• State, local, and foreign income tax
refunds.
• Income from a covenant not to
compete.
• Any reimbursement of a casualty or
theft loss included in income as
recovery of all or part of a prior year loss
deduction if the deduction for the loss
wasn’t treated as a passive activity
deduction.
• Cancellation of debt income to the
extent that at the time the debt was
discharged, the debt wasn’t properly
allocable under Temporary Regulations
section 1.163-8T to passive activities.

Recharacterization of Passive
Income

Certain income from passive activities
must be recharacterized and excluded
from passive activity income. The
amount of income recharacterized
equals the net income from the sources
given below. If during the tax year you
received net income from any of these
sources (either directly or through a
partnership or an S corporation), see
Pub. 925 to find out how to report net
income or loss from these sources. For
more information, see Temporary
Regulations section 1.469-2T(f) and
Regulations section 1.469-2(f).

Income from the following sources
may be subject to the net income
recharacterization rules.
• Significant participation passive
activities defined in item 4 under Tests
for individuals, earlier.
• Rental of property if less than 30% of
the unadjusted basis of the property is
subject to depreciation.
• Passive equity-financed lending
activities.
• Rental of property incidental to a
development activity.
• Rental of property to a nonpassive
activity.
• Acquisition of an interest in a
pass-through entity that licenses
intangible property.

Passive Activity Deductions

To figure your overall gain or overall loss
from all passive activities or any passive
-7-

activity, take into account only passive
activity deductions.
Passive activity deductions include
all deductions from activities that are
passive activities for the current tax year
and all deductions from passive
activities that were disallowed under the
PAL rules in prior tax years and carried
forward to the current tax year. See
Regulations section 1.469-1(f)(4).
Passive activity deductions include
any loss from a disposition of property
used in a passive activity at the time of
the disposition and any loss from a
disposition of less than your entire
interest in a passive activity. See
Dispositions, later, for the treatment of
losses upon disposition of your entire
interest in an activity.
Passive activity deductions don’t
include the following.
• Deductions for expenses (other than
interest expense) that are clearly and
directly allocable to portfolio income.
• Qualified home mortgage interest,
capitalized interest expenses, and other
interest expenses (except self-charged
interest treated as a passive activity
deduction (discussed next) and interest
expenses properly allocable to passive
activities).
• Losses from dispositions of property
that produce portfolio income or
property held for investment.
• State, local, and foreign income
taxes.
• Charitable contribution deductions.
• Net operating loss deductions,
percentage depletion carryovers under
section 613A(d), and capital loss
carryovers.
• Deductions and losses that would’ve
been allowed for tax years beginning
before 1987, but for basis or at-risk
limitations.
• Net negative section 481 adjustments
allocated to activities other than passive
activities. See Temporary Regulations
section 1.469-2T(d)(7).
• Deductions for losses attributable to a
federally declared disaster.
• The deduction allowed for the
deductible part of self-employment
taxes.

Self-Charged Interest

Certain self-charged interest income or
deductions may be treated as passive
activity gross income or passive activity
deductions if the loan proceeds are
used in a passive activity. Generally,
self-charged interest income and
deductions result from loans between
you and a partnership or S corporation
in which you had a direct or indirect

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ownership interest. This includes both
loans you made to the partnership or
S corporation and loans the partnership
or S corporation made to you. It also
includes loans from one partnership or
S corporation to another partnership or
S corporation if each owner in the
borrowing entity has the same
proportional ownership interest in the
lending entity.
The self-charged interest rules don’t
apply to your interest in a partnership or
S corporation if the entity made an
election under Regulations section
1.469-7(g) to avoid the application of
these rules. For more details on the
self-charged interest rules, see
Regulations section 1.469-7.

Former Passive Activities

A former passive activity is any activity
that was a passive activity in a prior tax
year but is not a passive activity in the
current tax year. A prior year unallowed
loss from a former passive activity is
allowed to the extent of current year
income from the activity.
If current year net income from the
activity is less than or equal to the prior
year unallowed loss, enter the prior year
unallowed loss and any current year net
income from the activity on Form 8582,
including all applicable Parts IV through
IX.
If current year net income from the
activity is more than the prior year
unallowed loss from the activity, enter
the prior year unallowed loss and the
current year net income up to the
amount of prior year unallowed loss on
Form 8582, including all applicable
Parts IV through IX.
If the activity has a net loss for the
current year, enter the prior year
unallowed loss (but not the current year
loss) on Form 8582, including all
applicable Parts IV through IX.
To report a disposition of a former
passive activity, follow the rules under
Dispositions next.

Dispositions
Disposition of an Entire Interest

If you disposed of your entire interest in
a passive activity or a former passive
activity to an unrelated person in a fully
taxable transaction during the tax year,
your losses allocable to the activity for
the year aren’t limited by the PAL rules.
A fully taxable transaction is a
disposition in which you recognize all
realized gain or loss.

If you’re using the installment method
to report this kind of disposition, figure
the loss for the current year that isn’t
limited by the PAL rules by multiplying
your overall loss (which doesn’t include
losses allowed in prior years) by the
following fraction:
Gain recognized in the current year
Unrecognized gain as of the
beginning of the current year

A partner in a PTP isn’t treated as
having disposed of an entire interest in
an activity of a PTP until there’s an
entire disposition of the partner's
interest in the PTP.

Reporting an Entire Disposition
on Form 4797 or Form 8949
If you completely dispose of your entire
interest in a passive activity or a former
passive activity, you may have to report
net income or loss and prior year
unallowed losses from the activity. All
the net income and losses are reported
on the forms and schedules normally
used.
Combine all income and losses
(including any prior year unallowed
losses) from the activity for the tax year
to see if you have an overall gain or
loss.
If you have an overall gain, report the
income, losses, and prior year
unallowed losses on Part IV or V.
If you have an overall gain and this is
a former passive activity, report all
income and losses (including any prior
year unallowed losses) on the forms
and schedules normally used and don’t
use Form 8582.
If you have an overall loss when you
combine the income and losses, don’t
use Form 8582 for the activity. All losses
(including prior year unallowed losses)
are allowed in full. Report the income
and losses on the forms and schedules
normally used.
An overall loss from an entire
disposition of a passive activity is a
nonpassive loss if you have an
aggregate loss from all other passive
activities. When figuring your modified
adjusted gross income for Part II, line 6,
of Form 8582, be sure to take into
account the overall loss from the
disposition of the activity.
Example 1. Activity with overall
gain. You sell your entire interest in a
rental real estate activity in which you
actively participated for a gain of
-8-

$15,525. $7,300 of the gain is section
1231 gain reported on Form 4797,
Part I, and $8,225 is ordinary recapture
income reported on Form 4797, Part II.
On line 22 of Schedule E (Form 1040),
you report a total loss of $15,450, which
includes a current year $2,800 net loss
and a $12,650 prior year unallowed
loss. You have an overall gain from the
disposition ($15,525 – $15,450 = $75).
Because you had an overall gain, you
make the following entries on Part IV.
You enter the $15,525 gain on the
disposition in column (a), the current
year loss of $2,800 in column (b), and
the prior year unallowed loss of $12,650
in column (c).
Example 2. Activity with overall
loss. You sell your entire interest in an
oil and gas limited partnership that was
your only passive activity for a gain of
$2,000. You have a current year
Schedule E loss of $3,330 and a
Schedule E prior year unallowed loss of
$1,115.
Because you have an overall loss of
$2,445 after combining the gain and
losses, none of the amounts are entered
on Form 8582.
You enter the net loss plus the prior
year unallowed loss ($3,330 + $1,115 =
$4,445) on Schedule E, Part II, column
(i), and the $2,000 gain on the sale on
Form 8949, in either Part I or Part II,
depending on how long you held the
partnership interest.

Disposition of Less Than an
Entire Interest

Gains and losses from the disposition of
less than an entire interest in an activity
are treated as part of the net income or
net loss from the activity for the current
year.

A disposition of less than
substantially all of an entire
CAUTION interest doesn’t trigger the
allowance of prior year unallowed
losses.

!

Disposition of Substantially All
of an Activity

You may treat the disposition of
substantially all of an activity as a
separate activity if you can prove with
reasonable certainty:
1. The prior year unallowed losses,
if any, allocable to the part of the activity
disposed of; and
2. The net income or loss for the
year of disposition allocable to the part
of the activity disposed of.

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Specific Instructions

and a Form 4797 gain of $2,000. You
enter $7,000 in column (a).

Part I—2022 Passive
Activity Loss

Column (b). Enter the current year net
loss for each activity. Don’t enter any
prior year unallowed losses in this
column. Enter the total of column (b) on
Part I, line 1b, of Form 8582.
If an activity has net income on one
form or schedule and a net loss on
another form or schedule, report the net
amounts separately in columns (a) and
(b) of Part IV.

Use Part I to combine the net income
and net loss from all passive activities to
determine if you have a passive activity
loss (PAL) for 2022. Use Parts IV and V
first to determine the entries for lines 1
and 2 of Part I, as follows.
• Use Part IV for rental real estate
activities with active participation.
• Use Part V for all other passive
activities.
Line 3. If you have prior year unallowed
CRD from rental real estate activities,
treat that dollar amount as negative and
combine with lines 1d and 2d. Enter the
combined amount on line 3 and enter
“CRD” and the dollar amount of the
CRD (as a negative) on the dotted line.
Note. If you included prior year
unallowed CRD from rental real estate
activities in line 3, and line 3 is a loss
and line 1d is zero or more, go to the
instructions for Part II, line 9, later.
If you need additional lines for

TIP any of the Parts IV through IX,

you can either attach copies of
the applicable pages of Form 8582, or
your own schedule that’s in the same
format as the applicable part(s).

Part IV

Individuals and qualifying estates who
actively participated in rental real estate
activities must include the income or
loss from those activities in Part IV to
figure the amounts to enter on Part I,
lines 1a through 1c, of Form 8582.
Don’t enter a prior year unallowed
loss in column (c) of Part IV unless you
actively participated in the activity in
both the year the loss arose and the
current tax year. If you didn’t actively
participate in both years, enter the prior
year unallowed loss in column (c) of
Part V.
Married individuals who file
separate returns and lived with
CAUTION their spouses at any time during
the tax year don’t qualify under the
active participation rule and must use
Part V instead of Part IV.

!

Column (a). Enter the current year net
income from each activity. Enter the
total of column (a) on Part I, line 1a, of
Form 8582.
Example. A Schedule E rental
activity has current year profit of $5,000
Instructions for Form 8582 (2022)

Example. A Schedule E rental
activity has current year income of
$1,000 on line 21 of Schedule E and a
current year Form 4797 loss of $4,500.
You enter $1,000 in column (a) and
$4,500 in column (b).
Column (c). Enter the prior year
unallowed losses for each activity. You
find these amounts on Part VII, column
(c), of your 2021 Form 8582. Enter the
total of column (c) from your 2022 Part
IV on Part I, line 1c, of Form 8582.
Columns (d) and (e). Combine
income and losses in columns (a)
through (c) for each activity, and either
enter the overall gain for the activity in
column (d) or enter the overall loss for
the activity in column (e). Don’t enter
amounts from columns (d) and (e) on
Parts I, II, or III of Form 8582. These
amounts will be used when the rest of
Form 8582 is completed to figure the
loss allowed for the current year.

Part V

Use Part V to figure the amounts to
enter on Part I, lines 2a through 2c, for:
• Passive trade or business activities,
• Passive rental real estate activities
that don’t qualify for the special
allowance, and
• Rental activities other than rental real
estate activities.
If you have prior year unallowed CRD
from passive activities other than rental
real estate activities, include that
amount in Part V. Add "CRD" after the
name of the activity.
Column (a). Enter the current year net
income for each activity. Enter the total
of column (a) on Part I, line 2a, of Form
8582. (See the example under Column
(a) for Part IV, earlier.)
Column (b). Enter the current year net
loss for each activity. Enter the total of
column (b) on Part I, line 2b, of Form
8582. (See the example under Column
(b) for Part IV, earlier.)
Column (c). Enter the unallowed
losses for the prior years for each
activity. You find these amounts on Part
-9-

VII, column (c), of your 2021 Form 8582.
Enter the total of column (c) from your
2022 Part V on Part I, line 2c, of Form
8582.
Columns (d) and (e). Combine
income and losses in columns (a)
through (c) for each activity, and either
enter the overall gain for the activity in
column (d) or enter the overall loss for
the activity in column (e). Don’t enter
amounts from columns (d) and (e) on
Parts I, II, or III of Form 8582. These
amounts will be used when the rest of
Form 8582 is completed to figure the
loss allowed for the current year.

Part II—Special Allowance
for Rental Real Estate
Activities With Active
Participation
If your filing status is married
filing separately and you lived
CAUTION with your spouse at any time
during the year, you are not eligible for
the special allowances in Part II. Do not
complete Part II. Instead, go to Part III of
Form 8582. See the instructions for Part
III—Total Losses Allowed, later.

!

Use Part II to figure the maximum
amount of rental loss allowed if you
have an overall loss on Part I, line 1d,
from your rental real estate activities you
actively participated in during 2022.
Note. If you included prior year
unallowed CRD from rental real estate
activities in line 3, first figure the special
$25,000 allowance for losses from
rental real estate activities with active
participation from Part I, line 1d, if any,
without regard to the CRD, by
completing lines 4 through 8. To apply
any remaining portion of the $25,000
allowance to prior year unallowed CRD
from rental real estate activities, see the
instructions for line 9.
If you’re claiming both the
premium tax credit (PTC) and
CAUTION self-employed health insurance
deduction (SEHID) and Part I, lines 1d
and 3, of Form 8582 are both losses,
see Self-Employed Health Insurance
Deduction and PTC in Pub. 974. You’ll
have to complete worksheets in Pub.
974 before you complete Part II of Form
8582.

!

Enter all numbers in Part II as
positive amounts (that is, greater than
zero).
Example. Part II, line 4, has a loss of
$42,000 (reported as a positive amount)
and line 8 is $25,000. You enter

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$25,000 on line 9 (the smaller of line 4
or line 8, both treated as positive
amounts).
Note. If you included prior year
unallowed CRD from rental real estate
activities in line 3, and line 3 is a loss
and line 1d is a loss, complete lines 4
through 8, then see the instructions for
line 9 below. If line 1d of Part I is zero or
more, and line 3 is a loss, go directly to
the instructions for line 9 below.
Line 4. Enter on line 4 the smaller of
the loss on Part I, line 1d, or the loss on
line 3.
Example. Part I, line 1d, has a loss
of $3,000 and line 2d has a gain of
$100. The combined loss on line 3 is
$2,900. You enter $2,900 as a positive
number on Part II, line 4 (the smaller of
the loss on Part I, line 1d, or the loss on
line 3).
Line 5. Married persons filing separate
returns who lived apart from their
spouses at all times during the year
must enter $75,000 on line 5 instead of
$150,000.
Line 6. To figure modified adjusted
gross income, combine all the amounts
used to figure adjusted gross income
except don’t take into account:
• Passive income or loss included on
Form 8582,
• Any rental real estate loss allowed to
real estate professionals (defined under
Activities That Are Not Passive
Activities, earlier),
• Any overall loss from a PTP,
• The taxable amount of social security
and tier 1 railroad retirement benefits,
• Deductible contributions to traditional
individual retirement accounts (IRAs)
and section 501(c)(18) pension plans,
• The deduction allowed for the
deductible part of self-employment
taxes,
• The exclusion from income of interest
from series EE and I U.S. savings bonds
used to pay higher education expenses,
• The exclusion of amounts received
under an employer's adoption
assistance program,
• The student loan interest deduction,
or
• The deduction allowed for
foreign-derived intangible income and
global intangible low-taxed income.
Include in modified adjusted gross
income any portfolio income and
expenses that are clearly and directly
allocable to portfolio income. Also
include any income that’s treated as
nonpassive income, such as overall
gain from a PTP and net income from an

activity or item of property subject to the
recharacterization of passive income
rules.
When figuring modified adjusted
gross income, include any overall loss
from the entire disposition of a passive
activity (considered a nonpassive loss).
Example. Your adjusted gross
income on line 11 of Form 1040 or Form
1040-SR is $92,000 and you have
taxable social security benefits of
$5,500 on line 6b. Your modified
adjusted gross income is $86,500
($92,000 – $5,500).
Line 8. Don’t enter more than $12,500
on line 8 if you’re married filing a
separate return and you and your
spouse lived apart at all times during the
year.
Line 9. If you do not have prior year
unallowed CRD from rental real estate
activities, enter the smaller of line 4 or
line 8 on line 9.
If you have prior year unallowed CRD
from rental real estate activities included
on line 3 of Part I, and you have a loss
on line 1d and line 3 of Part I, first figure
the special $25,000 special allowance
for losses from rental real estate
activities with active participation,
without regard to the CRD, by
completing lines 4 through 8, then go to
the Worksheet below. If line 1d of Part I
is zero or more, and line 3 is a loss,
complete the Worksheet below and
enter the result on line 9 as described
below.
The remaining portion of the $25,000
allowance, if any, is available for the
prior year unallowed CRD from rental
real estate activities. Use the Worksheet
to figure the maximum amount of prior
year unallowed CRD allowed from rental
real estate activities.

Worksheet for Special Allowance
for Prior Unallowed Commercial
Revitalization Deductions From
Rental Real Estate
Enter all numbers in this calculation as positive
amounts (greater than zero)
A. Enter $25,000* reduced by the
amount, if any, of the smaller of Part II,
line 4 or line 8 . . . . . . . . . . . . . . . . .

$

B. Enter the loss from Part I,
line 3 . . . . . . . . . . . . . . . . . . . . . . .

$

C. Reduce line B by the amount of the
smaller of Part II, line 4 or
line 8 . . . . . . . . . . . . . . . . . . . . . . .

$

D. Enter the smallest of the amount of
the prior unallowed CRD (as a positive
amount), the amount on line A, or the
amount on line C . . . . . . . . . . . . . . .

$

* Enter $12,500 (reduced by the amount, if any, of
the smaller of Part II, line 4 or line 8) on line A if
you’re married but filing a separate return and you
and your spouse lived apart at all times during the
year.

Combine line D with the smaller of
line 4 or line 8 and enter the combined
amount on line 9. Enter “CRD” and the
dollar amount of the special allowance
for CRD on the dotted line.

Part III—Total Losses
Allowed

Use Part III to figure the amount of the
losses from all passive activities (as
determined in Part I) allowed for 2022.

Line 11. Use Parts IV through IX of
Form 8582 and the related instructions
to figure the unallowed loss to be
carried forward and the allowed loss to
report on your forms and schedules for
2022.

Parts IV and V

Parts IV and V, columns (d) and (e),
show whether an activity had an overall
gain or loss. If you have activities that
show overall gain in column (d) of Parts
IV or V, report all the income and losses
listed in columns (a), (b), and (c) for
those activities on the proper forms and
schedules, including Form 8582.
If you have activities that show an
overall loss in column (e) of Parts IV or
V, you must allocate your allowed loss
on Part III, line 11, of Form 8582 to
those activities by completing Parts VI,
VII, plus VIII and/or IX.
Complete Part VI only if you entered
an amount (other than zero) on Part II,
line 9, of Form 8582. Otherwise, skip
Part VI and complete Part VII for all
activities in Part IV or V that have overall

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losses in column (e) and any amount of
prior year unallowed CRD included in
line 3.

Part VI

Use Part VI to allocate the special
allowance on Part II, line 9, of Form
8582 among your rental real estate
activities.
If you used the Worksheet in the
instructions for line 9 to apply any
remaining special allowance to prior
year unallowed CRD from one or more
rental real estate activities, complete a
separate Part VI to allocate that portion
of the special allowance to those CRD
activities.
In the first column of Part VI, enter
the name of each activity. In the second
column, enter the form or schedule and
line number on which the loss will be
reported.
Example. You receive a
Schedule K-1 from partnership P that
reports losses from two rental real
estate activities, Activity X and Activity
Y. The losses from partnership P are
reported on line 28A of Schedule E. In
the first two columns of Part VI, enter:
Name of Activity

Form or Schedule

Activity X

Sch E, line 28A

Activity Y

Sch E, line 28A

If the loss from an activity is reported in
more than one place, identify both
locations in the second column (for
example, Sch E, line 28A/Form 4797,
line 2). If you need additional space,
show this information on an attached
statement.
If you entered an amount on Part II,
line 9, and there is no amount included
on line 9 from prior year disallowed
CRD, list on Part VI all activities with an
overall loss in column (e) of Part IV.
If you also included an amount for
prior year unallowed CRD from rental
real estate activities on line 9, complete
another Part IV for these CRD activities.
You can use another Part IV, or your
own schedule in the same format as
Part IV. Enter the prior year unallowed
CRD for each activity in column (a) of
the second Part IV. Then follow the
instructions for column (b) and column
(c) below for each Part IV.
Column (a). Enter the overall loss from
column (e) of Part IV for each activity.
Column (b). Divide each of the
individual losses shown in column (a) by
Instructions for Form 8582 (2022)

the total of all the losses in column (a),
and enter this ratio for each activity in
column (b). The total of all the ratios in
column (b) must equal 1.00.
Column (c). Multiply each ratio in
column (b) by the amount on Part II,
line 9, of Form 8582, if there is no prior
year unallowed CRD from rental real
estate activities, and enter the results in
column (c). The total of column (c) must
be the same as Part II, line 9, of Form
8582.
If there is prior year unallowed CRD
included in Part II, line 9,
1. For the Part VI for rental real
estate activities with active participation,
multiply each ratio in column (b) by the
lesser of line 4 or line 8; and
2. For the Part VI for prior year
unallowed CRD, multiply each ratio in
column (b) by the amount from line D of
the Worksheet in the instructions for
line 9 above.
The total of column (c) for the Part VI for
rental real estate activities with active
participation should be the same as the
lesser of line 4 or line 8, Part II, and the
total of column (c) for the second Part VI
for prior year unallowed CRD should be
the amount from line D of the
Worksheet.
Column (c) total is the same as
column (a) total. If the total losses in
column (c) are the same as those in
column (a), the losses in Part IV (or, in
the case of the second Part VI for prior
unallowed CRD, the additional amount
listed in Part I, line 3) are allowed in full
and aren’t carried over to Part VII.
Report all amounts in columns (a), (b),
and (c) of Part IV on the proper forms
and schedules.
Column (c) total is less than
column (a) total. If the total losses in
column (c) are less than the total losses
in column (a), complete column (d).
Column (d). Subtract column (c) from
column (a) and enter the results in
column (d). Also enter the amounts from
column (d) of Part VI in column (a) of
Part VII.

Part VII—Allocation of
Unallowed Losses

Complete Part VII if any activities have
an overall loss in column (e) of Part V or
losses in column (d) of Part VI (in
column (e) of Part IV and any prior year
unallowed CRD included in Part I, line 3,
if you didn’t have to complete Part VI).
On Part VII, enter the name of each
activity and the form or schedule and
line number on which the loss will be
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reported. See the Example for Part VI. If
you have prior year unallowed CRD
from a passive activity other than rental
real estate in Part V, and/or unallowed
losses for prior year CRD from a rental
real estate activity on Part VI, column
(d), add “CRD” after the name of each of
the activities.
Column (a). Enter the amounts, if any,
from column (d) of Part VI (from column
(e) of Part IV and any prior year
unallowed CRD included in Part I, line 3,
if you didn’t have to complete Part VI).
Also enter the losses, if any, from
column (e) of Part V.
Column (b). Divide each of the
individual losses shown in column (a) by
the total of all the losses in column (a)
and enter this ratio for each activity in
column (b). The total of all the ratios
must equal 1.00.
Column (c). Complete the following
computation.
A. Enter as a positive amount
Part I, line 3, of Form
8582 . . . . . . . . . . . . .
B. Enter Part II, line 9, of
Form 8582 . . . . . . . . .
C. Subtract line B from
line A . . . . . . . . . . . .

Multiply each ratio in column (b) by
the amount on line C above, and enter
the result in column (c).

Parts VIII and IX

Parts VIII and IX figure your unallowed
and allowed losses for each activity.
If you have losses from any activity
that are reported on two or more
different forms or schedules, use Part IX
instead of Part VIII for that activity.
Also use Part IX instead of Part VIII
for any activity with two or more
transactions that are reported on the
same form or schedule but must be
separately identified for tax purposes.
Transactions that must be separately
identified include capital losses that are
28% rate losses and those that aren’t.
Note. 28% rate gain or loss includes all
collectibles gains and deductible
long-term losses and section 1202 gain
on the sale of qualified small business
stock. See the Instructions for
Schedule D for details.

Part VIII—Allowed Losses
Use Part VIII for any activity listed in Part
VII if all the loss from that activity is

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reported on one form or schedule and
no transactions need to be identified
separately (as discussed in Part IX,
later). Also see Identification of
Disallowed Passive Activity Deductions
in Pub. 925 for more information.
Example. You will report all the
allowed loss from an activity listed in
Part VII on Schedule E. Use Part VIII to
determine the allowed loss, even if part
of the loss is a current year Schedule E
loss and part of it is a prior year
unallowed Schedule E loss.
On Part VIII, enter the name of each
activity and the form or schedule and
line number on which the loss is
reported. Identify each CRD from Part
VII on a separate line of Part VIII and
add "CRD" after the name of the activity.
See the Example for Part VI.
Column (a). For each activity entered
in Part VIII, enter the net loss plus the
prior year unallowed loss for the activity.
Figure this amount by adding the losses
in columns (b) and (c) of Parts IV and V
and any prior year unallowed CRD
included in Part I, line 3.
Column (b). For each activity entered
in Part VIII, enter the amount from
column (c) of Part VII for the activity.
These are your unallowed losses for
2022. Keep a record of these amounts
so the losses can be used to figure your
PAL next year.
Column (c). Subtract column (b) from
column (a). These amounts are the
losses allowed for 2022 under the
passive loss rules. Report the amounts
in this column on the forms and
schedules normally used, subject to any
further limitations described in
Coordination With Other Limitations,
earlier.
See the forms and schedules listed
under How To Report Allowed Losses,
later.

Part IX—Activities With Losses
Reported on Two or More Forms or
Schedules
Use Part IX for any activity listed in Part
VII that has losses that are reported on
two or more different forms and
schedules or are identified separately
on the same form or schedule (for
example, 28% rate and non-28%-rate
capital losses reported on Form 8949).
Part IX allocates the allowed and
unallowed loss for the activity and
allocates the allowed loss to the
different forms or schedules (or where

identified separately on the same form
or schedule) used to report the losses.
Only losses that would cause a
difference in tax liability if they were
reported on a different form or schedule
or are identified separately on the same
form or schedule are kept separate.
Those forms, schedules, and parts are
the following.
• Schedules C, E, and F.
• Form 8949 (Parts I and II (28% rate
losses and non-28%-rate losses)).
Note. You must generally make a
separate entry in Form 8949, Part I or
Part II, for each transaction reported.
See the Instructions for Form 8949.
• Forms 4684 (Section B), 4797
(Parts I and II), and 4835.
Use a separate copy of Part IX for
each activity for which you have losses
reported on two or more different forms
or schedules or which are identified
separately on the same form or
schedule.
On Part IX, enter the form or
schedule and line number on the dotted
line above each line 1a (for example,
Schedule D, line 12, to report a
long-term capital loss from a
partnership).
Line 1a, column (a). Enter the net loss
plus any prior year unallowed loss from
the activity that’s reported on the same
form or, in the case of Form 4797 and
Form 8949, the same part.
If you have a Form 8949 28% rate
loss and a Form 8949 non-28%-rate
loss, see Example of Form 8949
transactions, later, before completing
Part IX.
Line 1b, column (a). Enter any net
income from the activity that’s reported
on the same form or schedule (or on the
same part of the same form or
schedule) as the loss on line 1a, column
(a).
Example. You enter a prior year
unallowed loss from Form 4797, Part I,
on line 1a. If the activity has a current
year Form 4797, Part I, gain, enter the
gain on line 1b, column (a). If the activity
doesn’t have a Form 4797, Part I, gain,
enter -0- on line 1b, column (a).
Column (b). Subtract line 1b, column
(a), from line 1a, column (a), and enter
the result in column (b). If line 1b,
column (a), is more than line 1a, column
(a), enter -0- in column (b).
Column (c). Divide each of the losses
entered in column (b) by the total of
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column (b) and enter the ratio in column
(c). The total of this column must be
1.00.
Column (d). Multiply the unallowed
loss for this activity, found in Part VII,
column (c), by each ratio in column (c)
of Part IX. If -0- is entered in column (b)
of Part IX, also enter -0- for that form or
schedule in column (d).
The amount in column (d) is the
unallowed loss for 2022. Keep a record
of Part IX so you can use the losses to
figure your PAL next year.
Column (e). Subtract the amount in
column (d) from the loss entered on
line 1a, column (a). This amount is the
loss allowed for 2022 under the passive
loss rules. Report the amounts in this
column on the forms or schedules
normally used, subject to any further
limitations described in Coordination
With Other Limitations, earlier. The
forms and schedules you use must
show the losses from this column and
the income, if any, for that activity from
column (a) of Part IV or Part V.
Example of Form 8949
transactions. The taxpayer had the
following Form 8949 transactions from
passive activities in 2022.
Activity I
A passive activity prior year
unallowed long-term capital loss (a 28%
rate loss) of $1,000 and a current year
long-term capital loss (a non-28%-rate
loss) of $3,000.
Activity II
A current year collectibles loss (a
28% rate loss) of $230 and net income
of $1,100 from Schedule E (Form 1040).
Part V
Activity I has an overall loss of
$4,000 (current year long-term capital
loss of $3,000 and a prior year
unallowed long-term capital loss of
$1,000). Activity II has an overall gain of
$870 (current year net income of $1,100
less a current year long-term capital
loss of $230). Part III, line 11, of Form
8582 shows an allowed loss of $1,100.
Since Activity II has an overall gain,
the amounts shown in columns (a) and
(b) of Part V for that activity are reported
on the proper forms and schedules and
aren’t shown on any other part.
Part VII
Activity I has an unallowed loss of
$3,130 (Part I, line 3, of Form 8582
($3,130) less the sum of Part II, line 9, of
Form 8582 (-0-) x 100%).
Part IX
Instructions for Form 8582 (2022)

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Part IX is used to figure the portion of
the unallowed loss attributable to the
28% rate loss and the portion
attributable to the non-28%-rate loss.
The loss attributable to the 28% rate
loss ($1,000) and the loss attributable to
the non-28%-rate loss ($3,000) are
separate entries in Part IX. The ratio of
each loss to the total of the two losses is
figured as follows. $1,000/$4,000 = 0.25
and $3,000/$4,000 = 0.75. Each of
these ratios is multiplied by the
unallowed loss for Activity I, shown in
column (c) of Part VII ($3,130).
Unallowed losses for Activity I are the
following.
• 28% rate loss: 0.25 x $3,130 =
$782.50.
• Non-28%-rate loss: 0.75 x $3,130 =
$2,347.50.
Allowed losses for Activity I are the
following.
• 28% rate loss: $1,000 − $782.50 =
$217.50.
• Non-28%-rate loss: $3,000 −
$2,347.50 = $652.50.
The total loss allowed for Activity I
($870) is entered in Part II of Form
8949. The allowed 28% rate loss
($217.50) is entered on the 28% Rate
Gain Worksheet (see the instructions for
Schedule D, line 18). Keep a record of
the unallowed 28% rate and
non-28%-rate losses to figure the PAL
for next year.
See the forms and schedules listed
under How To Report Allowed Losses
next.

How To Report
Allowed Losses
Line 3 is income. If Part I, line 3, of
Form 8582 shows net income or zero,
all the losses in columns (b) and (c) of
Parts IV and V and any prior year
unallowed CRD included on line 3 are
allowed in full under the passive loss
rules. Report the income and losses in
columns (a), (b), and (c) of Parts IV and
V and any prior year unallowed CRD
included on line 3 on the forms and
schedules normally used.
Line 11 is the same as the total of
Part I, lines 1b, 1c, 2b, 2c, and CRD
on line 3. In this case, all the losses in
columns (b) and (c) of Parts IV and V
and any prior year unallowed CRD
included on line 3 are allowed in full
under the passive loss rules. Report the
income and losses in columns (a), (b),
and (c) of Parts IV and V on the forms
and schedules normally used.

Instructions for Form 8582 (2022)

Columns (a) and (c) of Part VI are
the same amount. In this case, all the
losses in columns (b) and (c) of Part IV
and any prior year unallowed CRD
included on line 3 are allowed in full
under the passive loss rules. Report the
income and losses in columns (a), (b),
and (c) of Part IV and any prior year
unallowed CRD included on line 3 on
the forms and schedules normally used.
Losses allowed in column (c) of Part
VIII. The amounts in column (c) of Part
VIII are the losses or deductions allowed
for 2022 for the activities listed in that
part. Report the loss allowed from
column (c) of Part VIII and the income, if
any, for that activity from column (a) of
Part IV or V, on the form or schedule
normally used.
Losses allowed in column (e) of Part
IX. The amounts in column (e) of Part
IX are the losses or deductions allowed
for 2022 for the activity listed on that
part. Report the losses allowed from
column (e) of Part IX and the income, if
any, for that activity from column (a) of
Part IV or V, on the forms or schedules
normally used.
Schedules C and F, and Form 4835.
Enter on the net profit or loss line of your
Schedule C or F, or line 34c of Form
4835, the allowed passive loss from the
part. To the left of the entry space, enter
“PAL.”
If the net profit or loss line on your
form or schedule shows net profit for the
year, reduce the net profit by the
allowed loss from Part VIII or IX, and
enter the result on the net profit or loss
line.
Example. Schedule C shows net
profit for the year of $5,000 from a
passive activity. The activity also has a
Form 4797 gain of $2,500 and a prior
year unallowed Schedule C loss of
$6,000. The loss allowed for 2021 is
$6,000. You enter a net loss of $1,000
on line 31 of Schedule C (the $5,000 net
profit for the year less the $6,000 loss
allowed for the year). To the left of the
entry space, you enter “PAL.”
See Form 4797 and Form 8949,
later, if you also had passive gains and
losses from the sale of assets or of an
interest in a passive activity.
Schedule E, Part I. Enter the allowed
loss from the part on line 22 of
Schedule E. An activity that has net
profit for the year and prior year
unallowed losses will have net profit on
line 21 and the allowed loss on line 22.
The allowed loss on line 22 will include
the loss allowed to the extent of the net
-13-

profit. Line 24 of Schedule E will show
total profit and line 25 will show total
losses allowed (both passive and
nonpassive). Line 26 will show the total
net profit or loss.
Schedule E, Parts II and III. Any item
of income shown on your Schedule K-1
that’s passive income must be entered
as passive income in the appropriate
column of Schedule E, Part II or III.
Enter the passive loss allowed from Part
VIII or IX of Form 8582 in the
appropriate column for passive losses.
The passive losses allowed include the
loss allowed to the extent of any net
income from the activity. Passive net
income or loss reportable on
Schedule E, Part II, includes any
self-charged interest income and
deductions treated as passive activity
income and deductions. See
Self-Charged Interest, earlier.
See Form 4797 and Form 8949,
later, if you also had passive gains or
losses from the sale of assets or of an
interest in a passive activity.
Form 4684, Section B. Any passive
activity gain from Form 4684 is
unchanged. It was used on Form 8582
to determine allowable PALs. If you
don’t have passive losses on Form
4684, complete Form 4684 and follow
the instructions for that form for where to
report the gain.
If you have passive losses on Form
4684, cross through the amount you first
entered on line 31, 32, 38a, 38b, or 39
of that form, and enter the allowed loss
from the part. To the left of the entry
space, enter “PAL.”
Form 4797 and Form 8949. If you
sold assets from a passive activity or
you sold an interest in your passive
activity, all gains from the activity must
be entered on the appropriate line of
Form 4797 or Form 8949. Identify the
gain as “FPA.” Enter any allowed losses
for Form 4797 or Form 8949 on the
appropriate line. On Form 8949, include
“PAL” in the description of the property
in column (a). On Form 4797, enter
“PAL” to the left of the entry space (for
example, line 2 or line 10).
Entire disposition with an overall
loss. If you made an entire disposition
of your interest in a passive activity and
that activity had an overall loss, none of
the gains, if any, or losses were entered
on Form 8582. However, all the gains
and losses must be reported on the
forms or schedules normally used. To
the left of the entry space, enter
“EDPA.”

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Entire disposition with an overall
gain. Gains and losses from this
activity were included on Form 8582 so
that the gains might offset other PALs.
Report all the gains and losses on the
forms and schedules normally used,
and to the left of the entry space, enter
“EDPA.”

Publicly Traded
Partnerships (PTPs)

A PTP is a partnership whose interests
are traded on an established securities
market or are readily tradable on a
secondary market (or its substantial
equivalent).
An established securities market
includes any national securities
exchange and any local exchange
registered under the Securities
Exchange Act of 1934 or exempted
from registration because of the limited
volume of transactions. It also includes
any over-the-counter market.
A secondary market generally exists
if a person stands ready to make a
market in the interest. An interest is
treated as readily tradable if the interest
is regularly quoted by persons, such as
brokers or dealers, who are making a
market in the interest.
The substantial equivalent of a
secondary market exists if there’s no
identifiable market maker, but holders of
interests have a readily available,
regular, and ongoing opportunity to sell
or exchange interests through a public
means of obtaining or providing
information on offers to buy, sell, or
exchange interests. Similarly, the
substantial equivalent of a secondary
market exists if prospective buyers and
sellers have the opportunity to buy, sell,
or exchange interests in a timeframe
and with the regularity and continuity
that the existence of a market maker
would provide.

Special Instructions for PTPs

Section 469(k) provides that the passive
activity limitations must be applied
separately to items from each PTP.
PALs from a PTP may generally be
used only to offset income or gain from
passive activities of the same PTP. The
special allowance for rental real estate
activities (including CRDs) doesn’t
apply to PALs from a PTP.

Passive activity loss rules for partners in PTPs. Don’t report passive
income, gains, or losses from a PTP on
Form 8582. Instead, use the following
rules to figure and report your income,
gains, and losses from passive activities

you held through each PTP you owned
during the tax year.
1. Combine any current year
income, gains and losses, and any prior
year unallowed losses to see if you have
an overall loss from the PTP. Include
only the same types of income and
losses you would include to figure your
net income or loss from a non-PTP
passive activity. See Passive Activity
Income and Deductions, earlier.
2. If you have an overall gain, the
net gain portion (total gain minus total
losses) is nonpassive income.
It’s important to figure the nonpassive
income because it must be included in
modified adjusted gross income to
figure the special allowance for active
participation in a non-PTP rental real
estate activity on Form 8582. Also, you
may be able to include the nonpassive
income in investment income when
figuring your investment interest
expense deduction. See Form 4952,
Investment Interest Expense Deduction.
Report all gains and allowed losses
from the activity on the forms or
schedules normally used, and to the left
of each entry space, enter “From PTP.”
Example. You have Schedule E
income of $8,000 and a Form 4797 prior
year unallowed loss of $3,500 from the
passive activities of a PTP. You have a
$4,500 overall gain ($8,000 − $3,500)
that’s nonpassive income. On
Schedule E, Part II, you report the
$4,500 net gain as nonpassive income
in column (k). In column (h), you report
the remaining Schedule E gain of
$3,500 ($8,000 − $4,500) as passive
income. On the appropriate line of Form
4797, you report the prior year
unallowed loss of $3,500. You enter
“From PTP” to the left of each entry
space.
3. If you have an overall loss (but
didn’t dispose of your entire interest in
the PTP to an unrelated person in a fully
taxable transaction during the year), the
losses are allowed only to the extent of
the income, and the excess loss is
carried forward to use in a future year if
you have income to offset it. Report as a
passive loss on the schedule or form
you normally use the portion of the loss
equal to the income. Report the income
as passive income on the form or
schedule you normally use.
Example. You have a Schedule E
loss of $12,000 (current year losses
plus prior year unallowed losses) and
Form 4797 gain of $7,200 from the
passive activities of a PTP. You report
the $7,200 gain on the appropriate line
-14-

of Form 4797. On Schedule E, Part II,
you report $7,200 of the losses as a
passive loss in column (g). You carry
forward the unallowed loss of $4,800
($12,000 − $7,200).
If you have unallowed losses from
more than one activity of the PTP or
from the same activity of the PTP that
must be reported on different forms or
schedules, allocate the unallowed
losses on a pro rata basis to figure the
amount allowed for each activity or on
each form or schedule.
To allocate and keep a record of

TIP the unallowed losses, use Parts
VII, VIII, and IX of Form 8582.

List each activity of the PTP in Part
VII. Enter the overall loss from each
activity in column (a). Complete column
(b) of Part VII according to its
instructions. Multiply the total unallowed
loss from the PTP by each ratio in
column (b) and enter the result in
column (c) of Part VII.
Next, complete Part VIII for each
activity listed in Part VII if all the loss
from that activity is reported on one form
or schedule. Use Part IX instead of Part
VIII for each activity with losses reported
on two or more different forms or
schedules (or are identified separately
on the same form or schedule). Enter
the net loss plus any prior year
unallowed losses in column (a) of Part
VIII (or line 1a, column (a), of Part IX, if
applicable). The losses in column (c) of
Part VIII (column (e) of Part IX) are the
allowed losses to report on your forms
or schedules. Report these losses and
any income from the PTP on the forms
and schedules normally used.
4. If you have an overall loss and you
disposed of your entire interest in the
PTP to an unrelated person in a fully
taxable transaction during the year, your
losses (including prior year unallowed
losses) allocable to the activity for the
year aren’t limited by the passive loss
rules. A fully taxable transaction is one
in which you recognize all your realized
gain or loss. Report the income and
losses on the forms and schedules
normally used.
For rules on the disposition of an
entire interest reported using the
installment method, see Disposition of
an Entire Interest, earlier.
Paperwork Reduction Act Notice.
We ask for the information on this form
to carry out the Internal Revenue laws of
the United States. You are required to
give us the information. We need it to
Instructions for Form 8582 (2022)

Page 15 of 15

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

ensure that you are complying with
these laws and to allow us to figure and
collect the right amount of tax.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records
relating to a form or its instructions must
be retained as long as their contents
may become material in the
administration of any Internal Revenue
law. Generally, tax returns and return
information are confidential, as required
by section 6103.

The time needed to complete and file
this form will vary depending on
individual circumstances. The estimated
burden for individual taxpayers filing this
form is approved under OMB control
number 1545-0074 and is included in
the estimates shown in the instructions
for their individual income tax return.
The estimated burden for all other
taxpayers who file this form is shown
below.
Recordkeeping . . . . . . .

26 min.

Learning about the law
or the form . . . . . . . . . .

22 min.

Preparing the form . . . .
Copying, assembling,
and sending the form
to the IRS . . . . . . . . . . .

Instructions for Form 8582 (2022)

-15-

1 hr., 52
min.

48 min.

If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form
simpler, we would be happy to hear
from you. See the instructions for the tax
return with which this form is filed.