2023 Form 8582 - Passive Activity Loss Limitations

Form 8582, "Passive Activity Loss Limitations," is typically used by individuals to report and calculate the limitations on passive activity losses. Passive activities are business or rental activities in which the taxpayer does not materially participate. Material participation is generally defined by the IRS based on the level of involvement in the activity.

The purpose of Form 8582 is to determine the amount of losses from passive activities that can be deducted against other income. Passive losses are subject to limitations, and the form helps calculate the allowable losses that can be used to offset income from other passive activities or, in some cases, from non-passive income.

For the current tax year version of Form 8582, please go here.