Form 8582 Passive Activity Loss Limitations 2010

• Name(s) shown on return field contains Charles and Lily Woods
• Identifying number field contains 123-00-4567
• Under Part I: 2010 Passive Activity Loss Caution: Complete Worksheets 1, 2, and 3 on page 2 before completing Part I. Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities on page 3 of the instructions.):
• • 1a. Activities with net income (enter the amount from Worksheet 1, column (a)) field contains 2,776
  • 1b. Activities with net loss (enter the amount from Worksheet 1, column (b)) field contains negative 26,600
  • 1c. Prior years unallowed losses (enter the amount from Worksheet 1, column (c)) field contains negative 14,892
  • 1d. Combine lines 1a, 1b, and 1c field contains negative 38,716
• Under Part I: 2010 Passive Activity Loss: All Other Passive Activities:
• • 3a. Activities with net income (enter the amount from Worksheet 3, column (a)) field contains 4,000
  • 3b. Activities with net loss (enter the amount from Worksheet 3, column (b)) field contains negative 2,400
  • 3c. Prior years unallowed losses (enter the amount from Worksheet 3, column (c)) field contains negative 4,100
  • 3d. Combine lines 3a, 3b, and 3c field contains negative 2,500
• 4. Combine lines 1d, 2c, and 3d. If the result is net income or zero, all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c. Do not complete Form 8582. Report the losses on the forms and schedules normally used field contains negative 41,216
• If line 4 is a loss and : Line 1d is a loss, go to Part II. Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III. Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and III and go to line 15. Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II or Part III. Instead, go to line 15.
• Under Part II: Special Allowance for Rental Real Estate With Active Participation Note: Enter all numbers in Part II as positive amounts. See page 9 of the instructions for an example.:
  • 5. Enter the smaller of the loss on line 1d or the loss on line 4 field contains 38,716
  • 6. Enter $150,000. If married filing separately, see page 9 field contains 150,000
  • 7. Enter modified adjusted gross income, but not less than zero (see page 9) field contains 138,655
  • Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9, enter -0- on line 10. Otherwise, go to line 8.
  • 8. Subtract line 7 from line 6 field contains 11,345
  • 9. Multiply line 8 by 50% (.5). Do not enter more than $25,000. If married filing separately, see page 9 field contains 5,673
  • 10. Enter the smaller of line 5 or line 9 field contains 5,673
  • If line 2c is a loss, go to Part III. Otherwise, go to line 15.
• Under Part IV: Total Losses Allowed:
  • 15. Add the income, if any, on lines 1a and 3a and enter the total field contains 6,776
  • 16. Total losses allowed from all passive activities for 2010. Add lines 10, 14, and 15. See page 11 of the instructions to find out how to report the losses on your tax return field contains 12,449

Close Window