Clifford Johnson has a limited partnership investment and a rental condominium. Clifford actively manages the rental condominium. During 2019, his share of the loss from the limited partnership was $11,000, and his loss from the rental condo was $17,000. Assuming Clifford’s modified adjusted gross income is $124,000 for 2019, and he has no prior year unallowed losses from either activity, complete Form 8582 on Page 4-58. 

Form 8582

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Passive Activity Loss Limitations OMB No. 1545-1008 Fom 8582 2019 Department of the Treasury Internal Revenue Service (99 See separate instructions. Attach to Form 1040, Form 1040-SR, or Form 1041. Go to www.irs.gov/Form8582 for instructions and the latest information. Attachment Sequence No. 88 Name(s) shown on retum Identifying number 2019 Passive Activity Loss Caution: Complete Worksheets 1, 2, and 3 before completing PartI. Part I Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions.) 1a Activities with net income (enter the amount from Worksheet 1, column (a) b Activities with net loss (enter the amount from Worksheet 1, column (b) c Prior years' unallowed losses (enter the amount from Worksheet 1, column (c) d Combine lines 1a, 1b. and 1c 1a 1b 1c 1d Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2, column (a) b Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b) C Add lines 2a and 2b All Other Passive Activities 3a Activities with net income (enter the amount from Worksheet 3, column (a)) b Activities with net loss (enter the amount from Worksheet 3, column (b) c Prior years' unallowed losses (enter the amount from Worksheet 3, column (c) d Combine lines 3a, 3b, and 30 2a 2b 2c За 3b 30 INIONU 3d Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with your return; all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c. Report the losses on the forms and schedules normally used. If line 4 is a loss and: • Line 1d is a loss, go to Part II. 4 • Line 2c is a loss (and line 1d is zero or more), skip Part Il and go to Part II. • Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts Il and IIl and go to line 15. Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part Il or Part II. Instead, go to line 15. Part II Special Allowance for Rental Real Estate Activities With Active Participation Note: Enter all numbers in Part Il as positive amounts. See instructions for an example. Enter the smaller of the loss on line 1d or the loss on line 4 6. Enter $150,000. If married filing separately, see instructions Enter modified adjusted gross income, but not less than zero. See instructions Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9, enter -0- on line 10. Otherwise, go to line 8. 6 7 7 8 Subtract line 7 from line 6. Multiply line 8 by 50% (0.50). Do not enter more than $25,000. If married filing separately, see instructions 10 9. 10 If line 2c is a loss, go to Part II. Otherwise, go to line 15. Part II Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities Note: Enter all numbers in Part IIl as positive amounts. See the example for Part Il in the instructions. Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions. Enter the smaller of line 5 or line 9 11 11 12 Enter the loss from line 4. 12 13 Reduce line 12 by the amount on line 10 14 13 Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 Total Losses Allowed Add the income, if any, on lines 1a and 3a and enter the total. Total losses allowed from all passive activities for 2019. Add lines 10, 14, and 15. See instructions to find out how to report the losses on your tax retum 14 Part IV 15 15 16 16 For Paperwork Reduction Act Notice. see instructions. Form 8582 (2019) Cat. No. 63704F