The worksheets that flow to Form 8582-CR are completely calculated. You must enter the passive credits directly on the Passive Credit Entry Worksheet on the source forms:
- Schedule K-1 Worksheets-Partnership,
- Schedule K-1 Worksheets-S Corporation,
- Schedule K-1 Worksheets-Estates & Trusts,
- Work Credits line of Schedule C (Profit or Loss from Business),
- Schedule F (Profit or Loss from Farming) or Form 4835 (Farm Rental Income and Expenses),
- Form 8881 (Credit for Small Employer Pension Plan Startup Costs and Auto-Enrollment). The Form 8881 credit amount will first flow to the Schedule C, Schedule F or Form 4835 it is linked to.
- Form 8586 (Low-Income Housing Credit).
The program will transfer information from these K-1s and forms to Passive Credit Worksheets 1 through 4 UNLESS a box on the K-1, Form 4835, Schedule C or F has been checked that indicates the activity is nonpassive, or was a Publicly Traded Partnership. In the case of Form 8586, the treatment of passive versus non-passive is handled by the method of entry on the form itself.
From: On Demand Tax Guidance accessed from Form 8582-CR Passive Credits Worksheets 1-6 by right-clicking any entry box and choosing "About..."
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