Form 8582-CR Passive Activity Credit Limitations Form 8582-CR Passive Activity Credit Limitations Summary: This is an example of Form 8582-CR illustrating how to complete the form. Step 3. Mr. Jones follows the instructions for Worksheet 3 and enters the total credits from column (a) of that worksheet on Form 8582-CR, line 3a. He enters the total credits on line 3c and completes lines 5 through 7. Mr. Jones can skip Parts II and III and go to Part IV because the only credit he has is from a post-1989 low-income housing credit. He must also complete the computation for line 35 in the instructions to get the amount to enter on line 35 of the form. The line items completed are: "Name(s) shown on return" field contains John and Mary Jones "Identifying number" field contains 123-00-4567 Under "Part I: Passive Activity Credits": Under "Low-Income Housing Credits for Property Placed in Service After 1989 (See lines 3a through 3c.)": "3a. Credits from Worksheet 3, column (a)" field contains 12,000 "3c. Add lines 3a and 3b" field contains 12,000 Under "All Other Passive Activity Credits (See lines 4a through 4c.)": "5. Add lines 1c, 2c, 3c, and 4c" field contains 12,000 "6. Enter the tax attributable to net passive income" field contains 0 "7. Subtract line 6 from line 5. If line 6 is more than or equal to line 5, enter 0" field contains 12,000 Under "Part IV: Special Allowance for Low-Income Housing Credits for Property Placed in Service After 1989": "31. If you completed Part III, enter the amount from line 19. Otherwise, subtract line 16 from line 17" field contains 12,000 "32. Enter the amount from line 30" field contains 0 "33. Subtract line 32 from line 31. If zero, enter 0 here and on line 36" field contains 12,000 "34. Enter the smaller of line 3c or line 33" field contains 12,000 "35. Tax attributable to the remaining special allowance" field contains 8,250 "36. Enter the smaller of line 34 or line 35" field contains 8,250
