Form 8582: Passive Activity Reporting and Impact of New 3.8% Medicare Tax
Tackling Complex Passive Activity Computations and Navigating Income Tax and AMT Reporting Challenges
TUESDAY, NOVEMBER 5, 2013,1:00-2:50 pm Eastern
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Form
8582
Department of the Treasury
Internal Revenue Service (99)
Passive Activity Loss Limitations
a See
OMB No. 1545-1008
separate instructions.
a Attach
to Form 1040 or Form 1041.
a Information about Form 8582 and its instructions is available at www.irs.gov/form8582.
Name(s) shown on return
Part I
2013
Attachment
Sequence No. 88
Identifying number
2013 Passive Activity Loss
Caution: Complete Worksheets 1, 2, and 3 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 in the instructions.)
1a Activities with net income (enter the amount from Worksheet 1,
column (a)) . . . . . . . . . . . . . . . . . .
1a
b Activities with net loss (enter the amount from Worksheet 1, column
(b)) . . . . . . . . . . . . . . . . . . . . .
1b (
c Prior years unallowed losses (enter the amount from Worksheet 1,
1c (
column (c)) . . . . . . . . . . . . . . . . . .
d Combine lines 1a, 1b, and 1c . . . . . . . . . . . . . . . . . . . . . .
Commercial Revitalization Deductions From Rental Real Estate Activities
2a Commercial revitalization deductions from Worksheet 2, column (a) .
2a (
b Prior year unallowed commercial revitalization deductions from
2b (
Worksheet 2, column (b) . . . . . . . . . . . . . .
c Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . .
All Other Passive Activities
3a Activities with net income (enter the amount from Worksheet 3,
column (a)) . . . . . . . . . . . . . . . . . .
3a
b Activities with net loss (enter the amount from Worksheet 3, column
(b)) . . . . . . . . . . . . . . . . . . . . .
3b (
Prior years unallowed losses (enter the amount from Worksheet 3,
column (c)) . . . . . . . . . . . . . . . . . .
d Combine lines 3a, 3b, and 3c . . . . . . . . . . . . .
)
)
1d
)
)
)
2c (
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c
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3c (
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3d
4
Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with
your return; all losses are allowed, including any prior year unallowed losses entered on line 1c,
2b, or 3c. Report the losses on the forms and schedules normally used . . . . . . . .
4
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.
Part II
5
6
7
8
9
10
Note: Enter all numbers in Part II as positive amounts. See instructions for an example.
Enter the smaller of the loss on line 1d or the loss on line 4 . . . . . . . . . . . .
Enter $150,000. If married filing separately, see instructions . .
6
Enter modified adjusted gross income, but not less than zero (see instructions)
7
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.
Subtract line 7 from line 6 . . . . . . . . . . . . .
8
Multiply line 8 by 50% (.5). Do not enter more than $25,000. If married filing separately, see instructions
Enter the smaller of line 5 or line 9 . . . . . . . . . . . . . . . . . . . .
If line 2c is a loss, go to Part III. Otherwise, go to line 15.
Part III
11
12
13
14
5
9
10
Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities
Note: Enter all numbers in Part III as positive amounts. See the example for Part II in the instructions.
Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions
11
Enter the loss from line 4 . . . . . . . . . . . . . . . . . . . . . . . .
12
Reduce line 12 by the amount on line 10 . . . . . . . . . . . . . . . . . .
13
Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 . . . . . .
14
Part IV
15
16
Special Allowance for Rental Real Estate Activities With Active Participation
Total Losses Allowed
Add the income, if any, on lines 1a and 3a and enter the total . . . . . . . . . . . .
Total losses allowed from all passive activities for 2013. Add lines 10, 14, and 15. See
instructions to find out how to report the losses on your tax return . . . . . . . . . . .
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 63704F
15
16
Form 8582 (2013)
Page 2
Form 8582 (2013)
Caution: The worksheets must be filed with your tax return. Keep a copy for your records.
Worksheet 1—For Form 8582, Lines 1a, 1b, and 1c (See instructions.)
Current year
Name of activity
(a) Net income
(line 1a)
Prior years
(b) Net loss
(line 1b)
Overall gain or loss
(c) Unallowed
loss (line 1c)
(d) Gain
(e) Loss
Total. Enter on Form 8582, lines 1a, 1b,
and 1c . . . . . . . . . . . a
Worksheet 2—For Form 8582, Lines 2a and 2b (See instructions.)
(a) Current year
deductions (line 2a)
Name of activity
(b) Prior year
unallowed deductions (line 2b)
(c) Overall loss
Total. Enter on Form 8582, lines 2a and
2b
. . . . . . . . . . . . a
Worksheet 3—For Form 8582, Lines 3a, 3b, and 3c (See instructions.)
Current year
Name of activity
(a) Net income
(line 3a)
Prior years
(b) Net loss
(line 3b)
Overall gain or loss
(c) Unallowed
loss (line 3c)
(d) Gain
(e) Loss
Total. Enter on Form 8582, lines 3a, 3b,
and 3c . . . . . . . . . . . a
Worksheet 4—Use this worksheet if an amount is shown on Form 8582, line 10 or 14 (See instructions.)
Form or schedule
and line number
to be reported on
(see instructions)
Name of activity
Total
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(a) Loss
a
(b) Ratio
(c) Special
allowance
(d) Subtract
column (c) from
column (a)
1.00
Worksheet 5—Allocation of Unallowed Losses (See instructions.)
Form or schedule
and line number
to be reported on
(see instructions)
Name of activity
Total
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a
(a) Loss
(b) Ratio
(c) Unallowed loss
1.00
Form 8582 (2013)
Page 3
Form 8582 (2013)
Worksheet 6—Allowed Losses (See instructions.)
Form or schedule
and line number to
be reported on (see
instructions)
Name of activity
Total
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(a) Loss
(b) Unallowed loss
(c) Allowed loss
a
Worksheet 7—Activities With Losses Reported on Two or More Forms or Schedules (See instructions.)
Name of activity:
(a)
(b)
(c) Ratio
(d) Unallowed
loss
(e) Allowed loss
Form or schedule and line number
to be reported on (see
instructions):
1a Net loss plus prior year unallowed
loss from form or schedule . a
b Net income from form or
schedule . . . . . . . a
c
Subtract line 1b from line 1a. If zero or less, enter -0- a
Form or schedule and line number
to be reported on (see
instructions):
1a Net loss plus prior year unallowed
loss from form or schedule . a
b Net income from form or
schedule . . . . . . . a
c
Subtract line 1b from line 1a. If zero or less, enter -0- a
Form or schedule and line number
to be reported on (see
instructions):
1a Net loss plus prior year unallowed
loss from form or schedule . a
b Net income from form or
schedule . . . . . . . a
c
Total .
Subtract line 1b from line 1a. If zero or less, enter -0- a
.
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a
1.00
Form 8582 (2013)
Caution: DRAFT FORM—NOT FOR FILING
This is an early release draft of new IRS Form 8960, Net Investment Income Tax,
which the IRS is providing for your information as a courtesy. Do not file draft
forms. Also, do not rely on draft instructions and publications for filing. We
generally do not release drafts of forms until we believe we have incorporated all
changes. However, unexpected issues sometimes arise, or legislation is passed,
necessitating a change to a draft form. In addition, forms generally are subject to
OMB approval before they can be officially released.
The IRS prepared this draft of Form 8960 based solely on the proposed regulations
issued by the Treasury Department and the IRS and published in the Federal Register
on December 5, 2012. Although the regulations are generally proposed to be
effective for taxable years beginning after December 31, 2013, taxpayers may rely on
such regulations for the 2013 taxable year. Instructions for Form 8960 will be
released later this year. This draft form does not reflect any public comments
received on those regulations, and no inference should be drawn from any particular
line item regarding the treatment of such item in the final regulations.
Early releases of draft forms and instructions are at IRS.gov/draftforms. Please
note that drafts may remain on IRS.gov even after the final release is posted at
IRS.gov/downloadforms, and thus may not be removed until there is a new draft for
the subsequent revision. All information about all revisions of all forms, instructions,
and publications is at IRS.gov/formspubs.
Most forms and publications also have their own easily accessible information
page on IRS.gov. For example, the Form 1040 page is at IRS.gov/form1040; the
Form W-2 page is at IRS.gov/w2; the Publication 17 page is at IRS.gov/pub17; the
Form W-4 page is at IRS.gov/w4; the Form 8863 page is at IRS.gov/form8863; and
the Schedule A (Form 1040) page is at IRS.gov/schedulea. If typing in the links
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require the link to begin with “www.”. Note that these are shortcut links that will
automatically go to the actual link for the page.
You can submit comments about draft or final forms, instructions, or
publications on the Comment on Tax Forms and Publications page on IRS.gov.
We cannot respond to all comments due to the high volume we receive, but we
will carefully consider each one. Please note that we may not be able to
consider many suggestions until the subsequent revision of the product.
Form
8960
Department of the Treasury
Internal Revenue Service (99)
Net Investment Income Tax—
Individuals, Estates, and Trusts
▶ Information
OMB No. XXXX-XXXX
▶ Attach to Form 1040 or Form 1041.
about Form 8960 and its separate instructions is at www.irs.gov/form8960.
2013
Attachment
Sequence No. 72
Your social security number or EIN
Name(s) shown on Form 1040 or Form 1041
DRAFT AS OF
August 7, 2013
DO NOT FILE
Part I
Section 6013(g) election (see instructions)
Regulations section 1.1411-10(g) election (see instructions)
1
Taxable interest (Form 1040, line 8a; or Form 1041, line 1) . . . . . . . . . . . .
2
Ordinary dividends (Form 1040, line 9a; or Form 1041, line 2a) . . . . . . . . . .
3
Annuities from nonqualified plans (see instructions) . . . . . . . . . . . . . .
4a Rental real estate, royalties, partnerships, S corporations, trusts,
etc. (Form 1040, line 17; or Form 1041, line 5) . . . . . . .
4a
b Adjustment for net income or loss derived in the ordinary course of
a non-section 1411 trade or business (see instructions) . . . .
4b
c Combine lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . .
5a Net gain or loss from disposition of property from Form 1040,
combine lines 13 and 14; or from Form 1041, combine lines 4 and 7
5a
b Net gain or loss from disposition of property that is not subject to
net investment income tax (see instructions) . . . . . . .
5b
c Adjustment from disposition of partnership interest or S corporation
stock (see instructions) . . . . . . . . . . . . . .
5c
d Combine lines 5a through 5c . . . . . . . . . . . . . . . . . . . . .
6
Changes to investment income for certain CFCs and PFICs (see instructions) . . . . .
7
Other modifications to investment income (see instructions) . . . . . . . . . . .
8
Total investment income. Combine lines 1, 2, 3, 4c, 5d, 6, and 7 . . . . . . . . . .
Part II
9a
b
c
d
10
11
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1
2
3
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4c
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5d
6
7
8
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9d
10
11
Investment Expenses Allocable to Investment Income and Modifications
Investment interest expenses (see instructions) . . .
State income tax (see instructions) . . . . . . .
Miscellaneous investment expenses (see instructions) .
Add lines 9a, 9b, and 9c . . . . . . . . . . .
Additional modifications (see instructions) . . . . .
Total deductions and modifications. Add lines 9d and 10
Part III
12
Investment Income
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9a
9b
9c
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Tax Computation
Net investment income. Subtract Part II, line 11 from Part I, line 8. Individuals complete lines 13–
17. Estates and trusts complete lines 18a–21. If zero or less, enter -0- . . . . . . . . .
12
Individuals:
13
14
15
16
17
Modified adjusted gross income (see instructions) . .
Threshold based on filing status (see instructions) . .
Subtract line 14 from line 13. If zero or less, enter -0- .
Enter the smaller of line 12 or line 15 . . . . . . .
Net investment income tax for individuals. Multiply line
Form 1040, line 60 . . . . . . . . . . . . .
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16
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by
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13
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14
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15
. . . . . . . . . . .
3.8% (.038). Enter here and on
. . . . . . . . . . .
16
17
Estates and Trusts:
18a Net investment income (line 12 above) . . . . . . . . .
18a
b Deductions for distributions of net investment income and
deductions under section 642(c) (see instructions) . . . . .
18b
c Undistributed net investment income. Subtract line 18b from 18a (see
instructions) . . . . . . . . . . . . . . . . . .
18c
19a Adjusted gross income (see instructions) . . . . . . . .
19a
b Highest tax bracket for estates and trusts for the year (see
instructions) . . . . . . . . . . . . . . . . . .
19b
c Subtract line 19b from line 19a. If zero or less, enter -0- . . .
19c
20
Enter the smaller of line 18c or line 19c . . . . . . . . . . . . . . . . . . .
21
Net investment income tax for estates and trusts. Multiply line 20 by 3.8% (.038). Enter here and
on Form 1041, Schedule G, line 4 . . . . . . . . . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 59474M
20
21
Form 8960 (2013)