: 85 82 Passive Activity Loss Limitations |_OMB No. 1545-1008 _
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> See separate instructions. 1 i) 8 8
Department of the Treasury » Attach to Form 1040 or 1041. ‘Attachment
Internal Revenue Service Sequence No. 88
Name(s) as shown on return Social security or employer identification number

J Part | Computation of 1988 Passive Activity Loss

Caution: See the instructions for Worksheet | before completing Part |.

Rental Real Estate Activities With Active Participation (See the definition of active participation under .
Rental Activities in the instructions.) //
Activities acquired before 10-23-86 (Pre-enactment):
la Activities with net income, Worksheet 1,Part1,column(a) . . . .{Lta
1b Activities with net loss, Worksheet 1, Part1,column(b) - - - - -|Jb
1c Combinelineslaandlb . . . . woe es Le
Activities acquired after 10-22-86 (Post-enactment):
1d Activities with net income, Worksheet 1, Part2,column(a) . . . . [Jd
le Activities with net loss, Worksheet 1, Part2,column(b) - - - - - [te
1f Combinelinesldandle . . . coe ee es. LOE Us
1g Net income or (loss). Combine lines le and i toe coe ee ee LAB
1h Prior year unallowed losses from 1987, Worksheet 1, Parts Land 2, column o woe ee ee. LDR
li_Combinelinesigandlh_ . . . ee a oT

All Other Passive Activities (See the instructions for lines 2a >a through 2h.) mn

Activities acquired before 10-23-86 (Pre-enactment):

2a Activities with net income, Worksheet 2, Part1,column(a) - - - - | 2a
2b Activities with net loss, Worksheet 2, Part 1,column(b) . . - - . | 2b /
2c Combinelines2aand2b . . . . soe es [RE Y
Activities acquired after 10-22-86 (Post-enactment):
2d Activities with net income, Worksheet 2, Part2,column(a) - . . . L2d
2e Activities with net loss, Worksheet 2, Part2,column(b) . . . . .[2e
2f Combinelines2dand2e . . . tee LOE Ms
2g Net income or (loss). Combine lines 2c and ot sone re a4
2h _ Prior year unallowed losses from 1987, Worksheet 2, Parts 1 and 2, ‘column © woe ee ee LR
2i_Combinelines2gand2h_. . . | 2i
3 > Combine lines 1i and 2i. If the result is “net I income or ©, see the instructions ‘or Tine 3. i this line
and line 1c or line li are losses, go to line 4. Otherwise, enter -O- on lines 8 and 9 and gotolinel0_ .| 3

Computation of the Special Allowance for Rental Real Estate With Active Participation

Note: Before completing Parts Il and Ill, see the instructions for how to treat numbers as if they were all positive.

4 Enter the smaller of the loss on line 1i or the loss on line 3. If line 1iis -O- or net income, enter -O- Z
and complete lines5through9 . . . . a
5 Enter $150,000. If married filing separately, s see instructions. 2. ES
6 Enter modified adjusted gross income, but not less than -O- (see in-
structions). If line 6 is equal to or greater than line 5, skip line 7, enter
-0- on lines 8 and 9, and then go to line 10. Otherwise, got toline7. . _& . _
Subtract line6fromline5. . 7
Multiply line 7 by 50% 68). Do not enter more than n $25) 000. If married filing separately, s see MM Mh
instructions . . : -L8
Enter the smaller of line 4 or line 8 oe ee
Computation of Passive Activity Loss ‘Allowed
10 Combine lines 1c and 2c and enter the result. If the result is -0- or net income, skip to line 16. (See instructions.) | 20
11 If line 1c shows income, has no entry, or shows -0-, enter -0- on line 11. Otherwise, enter the smaller of line 1c or line 8 11
12 Subtract line 11 from line 10. If line 11 is equal to or greater than line 10,enter-O-. . . . . . . 12
13 SubtractlineQfromline3 ee ee LB
14 EnterthesmalleroflinelZorline13 2. 2 2 ee ee ee ee LM
15 Multiply line 14 by 40% (.4) andentertheresult . . 2... 2... ee ee LAB
16 Entertheamountfromline9. . . Se 2
17 __ Passive Activity Loss Allowed for 1988. Add lines 15 and 16 ee
18 Add the income, ifany, on lines 1a, 1d, 2a, and 2dandentertheresult . . . . . 18
19 Total losses allowed from all passive activities for 1988. Add lines 17 and 18. See the instructions
to see how to report the losses on yourtaxreturn . . . 19

For Paperwork Reduction Act Notice, see separate instructions. Form 8582 (1988)