Caution: See the instructions for Worksheets 1, 2, and 3 on pages 7 and 8 before completing Part 

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.)

Combine lines 3a, 3b, and 3c

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

Note: Enter all numbers in Part II as positive amounts. See page 8 for an example.

Subtract line 7 from line 6

10

Combine lines 1a, 1b, and 1c

Part I

Part II

Part III

O

Passive Activity Loss Limitations Form 8582

 See separate instructions. Department of the Treasury

Internal Revenue Service  Attach to Form 1040 or Form 1041.

A

S

Name(s) shown on return Iden

2004 Passive Activity Loss

1a

Activities with net income (enter the amount from Worksheet 1,

column (a))

1a

1b

Activities with net loss (enter the amount from Worksheet 1,

column (b))

b

1c

Prior years unallowed losses (enter the amount from Worksheet

1, column (c))

c

d 1d

All Other Passive Activities

3a

Activities with net income (enter the amount from Worksheet 3,

column (a))

3a

3b

Activities with net loss (enter the amount from Worksheet 3,

column (b))

b

3c

c

d

Prior years unallowed losses (enter the amount from Worksheet 3,

column (c))

4

4

Special Allowance for Rental Real Estate With Active Participation

5 Enter the smaller of the loss on line 1d or the loss on line 4 5

6 Enter $150,000. If married filing separately, see page 8 6

7 Enter modified adjusted gross income, but not less than zero (see page 8) 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.

8 8

9 Multiply line 8 by 50% (.5). Do not enter more than $25,000. If married filing separately, see page 8 9

Enter the smaller of line 5 or line 9 10

Special Allowance for Commercial Revitalization Deductions From Rental Real Esta

12

11

Add the income, if any, on lines 1a and 3a and enter the total

Total losses allowed from all passive activities for 2004. Add lines 10, 14, and 15. See

pages 10 and 11 of the instructions to find out how to report the losses on your tax return

For Paperwork Reduction Act Notice, see page 12 of the instructions. 

3d

Cat. No. 63704F

( )

( )

( )

( )

If line 4 is a loss and: ● Line 1d is a loss, go to Part II. 

(99)

Add lines 2a and 2b

2a Commercial revitalization deductions from Worksheet 2, column (a) 2a

2b

Prior year unallowed commercial revitalization deductions from

Worksheet 2, column (b)

b

c 2c

( )

( )

Commercial Revitalization Deductions From Rental Real Estate Activities

Caution: If your filing status is married filing separately and you lived with your spouse at any time during the yea

Part II or Part III. Instead, go to line 15.

If line 2c is a loss, go to Part III. Otherwise, go to line 15.

Note: Enter all numbers in Part III as positive amounts. See the example for Part II on page 8.

Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions

Enter the loss from line 4

Reduce line 12 by the amount on line 10

Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13

Part IV Total Losses Allowed

13

14

15

16

11

12

13

14

15

16

( 

● 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 a
Caution: The worksheets must be filed with your tax return. Keep a copy for your records.

Form 8582 (2004) 

Worksheet 1—For Form 8582, Lines 1a, 1b, and 1c (See page 7 of the instructions.)

Current year Prior years Overall ga

(c) Unallowed

loss (line 1c)

(b) Net loss

(line 1b)

(a) Net income

(line 1a) (d) Gain 

Name of activity

Total. Enter on Form 8582, lines 1a,

1b, and 1c 

Worksheet 3—For Form 8582, Lines 3a, 3b, and 3c (See page 8 of the instructions.)

Current year Prior years Overall ga

(a) Net income

(line 3a)

(b) Net loss

(line 3b)

(c) Unallowed

loss (line 3c) (d) Gain 

Name of activity

Total. Enter on Form 8582, lines 3a,

3b, and 3c 

Worksheet 4—Use this worksheet if an amount is shown on Form 8582, line 10 or 14 (See page 

(c) Special

allowance (a) Loss (b) Ratio

Form or schedule

and line number

to be reported on

(see instructions)

Total  1.00

Name of activity

Worksheet 5—Allocation of Unallowed Losses (See page 9 of the instructions.)

(a) Loss (b) Ratio (c

Form or schedule

and line number 

to be reported on

(see instructions)

Name of activity

Total  1.00

Worksheet 2—For Form 8582, Lines 2a and 2b (See pages 7 and 8 of the instructions.)

(c) O

(b) Prior year 

unallowed deductions (line 2b)

(a) Current year 

deductions (line 2a) Name of activity

Total. Enter on Form 8582, lines 2a

and 2b 
Form 8582 (2004) 

Worksheet 7—Activities With Losses Reported on Two or More Different Forms or Schedules (See pag

(a) (b) (c) Ratio (d) Unallowed

loss 

Name of Activity:

Form or schedule and line number

to be reported on (see

instructions):

Net loss plus prior year unallowed

loss from form or schedule 

1a

Net income from form or

schedule 

b

c Subtract line 1b from line 1a. If zero or less, enter -0- 

Net loss plus prior year unallowed

loss from form or schedule 

1a

Net income from form or

schedule 

b

c Subtract line 1b from line 1a. If zero or less, enter -0- 

Net loss plus prior year unallowed

loss from form or schedule 

1a

Net income from form or

schedule 

b

c Subtract line 1b from line 1a. If zero or less, enter -0- 

Total  1.00

Form or schedule and line number

to be reported on (see

instructions):

Form or schedule and line number

to be reported on (see

instructions):

Printed on recycled paper 

Worksheet 6—Allowed Losses (See pages 9 and 10 of the instructions.)

(a) Loss (b) Unallowed loss 

Form or schedule

and line number to

be reported on (see

instructions)

Name of activity

Total