Form 8582, Passive Activity Loss Limitations is used to calculate the amount of any passive activity loss that a taxpayer can take in a given year. For more information on passive activity losses, see here.
Form 8582 is automatically generated by TaxSlayer Pro based on information provided elsewhere in the return, and only a few lines can be directly edited. If Form 8582 is included in a return it cannot be removed, and a passive loss that has been limited cannot be taken. Regardless of the number or complexity of passive activities the taxpayer has, only one Form 8582 is filed.
To review the form and its calculation of any passive activity loss limitation, from the Main Menu of the tax return (Form 1040) select
- View Results
- Form 8582
The form allows for certain adjustments to the calculated entries pulled from Schedule D, Form 4797, or Form 6252. To make these adjustments on Form 8582, from the Main Menu of the tax return (Form 1040) select:
- Income Menu
- Rents, Royalties, Entities (Sch E,K-1,4835,8582)
- Form 8582 (Passive Activity Loss Limitations)
- Gain Reported on 4797 from a Rental Disposition - Enter here the gain from the sale of rental real estate activity reported on Form 4797 in which the taxpayer actively participated. The entry will be included in Form 8582 Worksheet 1.
- Passive Limitation Calculation for Sch D Transactions
Passive Limitation Calculation for Form 4797 Trans
Passive Limitation Calculation for Form 6252 Trans - Enter on these lines any +/- amount as needed. Each line flows to Part V as an adjustment to current year net income or loss.
Note: This is a guide on Form 8582 in the TaxSlayer Pro program. This is not intended as tax advice.