Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Rental and Schedules K-1

Rental Loss

Reporting Rental Loss

For a taxpayer with a passive rental loss, check page 2 of the Form 1040 Instructions for Schedule E to determine if the taxpayer is required to file Form 8582, Passive Activity Loss Limitations. The form summarizes losses and income from all passive activities.

Generally, taxpayers are not required to file Form 8582 if they have:

  • Only one passive loss generated from a rental activity and
  • An AGI of less than $100,000

Completing Form 8582 is out of scope if volunteers are required by software to enter additional data in Form 8582. If any questions arise regarding whether to file or how to complete Form 8582, refer the taxpayer to the IRS or a professional tax preparer.

Instructions for Schedule E
Form 8582

Instructions for Schedule E

Form 8582