Instructions for IRS Form 8582 Passive Activity Loss Limitations

This document contains official instructions for IRS Form 8582 , Passive Activity Loss Limitations - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury.

FAQ

Q: What is IRS Form 8582?A: IRS Form 8582 is used to calculate and report passive activity losses and credits.

Q: Who needs to file IRS Form 8582?A: Individuals or entities with passive activity losses or credits need to file IRS Form 8582.

Q: What are passive activity losses?A: Passive activity losses are losses from certain business or rental activities in which the taxpayer does not materially participate.

Q: What are passive activity credits?A: Passive activity credits are credits earned from certain business or rental activities in which the taxpayer does not materially participate.

Q: How do I calculate passive activity losses?A: Passive activity losses are calculated by subtracting passive activity income from passive activity deductions.

Q: What are the limitations on passive activity losses?A: There are limits on the amount of passive activity losses that can be deducted based on the taxpayer's level of participation and income.

Q: How do I report passive activity losses and credits?A: Passive activity losses and credits are reported on IRS Form 8582 and may be used to offset other passive income or carried forward to future years.

Q: Are there any exceptions to the passive activity loss limitations?A: Yes, there are exceptions for real estate professionals and certain rental activities.

Q: When is the deadline to file IRS Form 8582?A: The deadline to file IRS Form 8582 is typically the same as the deadline for filing your tax return, which is usually April 15th.