Form 8582 Passive Activity Loss Limitations {8582}

Form 8582 (2024) - PASSIVE ACTIVITY LOSS LIMITATIONS. This form is used by noncorporate taxpayers to figure the amount of any passive activity loss (PAL) for the current tax year and to report the application of prior year unallowed PALs. A PAL occurs when total losses (including prior year unallowed losses) from all your passive activities exceed the total income from all your passive activities. PALs can’t be used to offset income from nonpassive activities. However, a special allowance for rental real estate activities may allow some losses even if the losses exceed passive income. PALs not allowed in the current year are carried forward until they’re allowed either against passive activity income; against the special allowance, if applicable; or when you sell or exchange your entire interest in the activity in a fully taxable transaction to an unrelated party. www.FormsWorkflow.com