Form 8582 figures the amount of Passive Activity Loss (PAL) for the current year and reports the application of prior year of prior year unallowed PALs. As a result, all unallowed PALs are listed on Form 8582. The form shows the prior year unallowed PAL that carried forward, the allowed loss, and the unallowed loss, which carries forward to the next year on Form 8582. The numbers you are seeing on the Schedule E worksheet should have come from Form 8582, Part VII, Allocation of Unallowed Losses.
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