How To Report Your Passive Activity Loss

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How To Report Your Passive Activity Loss

More than one form or schedule may be required for reporting your passive activities. The actual number of forms depends on the number and types of activities you must report. Some forms and schedules that may be required are:

  • Schedule C (Form 1040), Profit or Loss From Business,

  • Schedule D (Form 1040), Capital Gains and Losses,

  • Schedule E (Form 1040), Supplemental Income and Loss,

  • Schedule F (Form 1040), Profit or Loss From Farming,

  • Form 4797, Sales of Business Property,

  • Form 6252, Installment Sale Income,

  • Form 8582, Passive Activity Loss Limitations,

  • Form 8582-CR, Passive Activity Credit Limitations, and

  • Form 8949, Sales and Other Dispositions of Capital Assets.

Regardless of the number or complexity of passive activities you have, you should use only one Form 8582. If you need additional lines for any of the Form 8582 worksheets, you can either use copies of Form 8582 page 2 or page 3, whichever is applicable, or your own schedule that is in the same format as the worksheet.