Who has experience with this? I have client who receives K-1 1065 - passive - and receives a credit amount on Line 15. I've read and gone thru all the forms, and am still confused. I think I've had carryover from other years - I think you can't take the credit over the passive income. Does that include other passive incomes like income from a 4835? Looking for some easy to understand instructions
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Hi Jen - see the instructions here: http://www.irs.gov/pub/irs-pdf/i1065sk1.pdf
Go to specific instructions and you will see box 15 credits. The instructions provide pretty good direction for each of the codes.
Read this in the instructions:
"Box 15. Credits
If you have credits that are passive activity
credits to you, you must complete Form
8582-CR"
What code in box 15? -
I'm at home now, but I think "p".Comment
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Report on 8864, but do we get even if ordinary income is a loss. TP is not below basis.Comment
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form 8582-CR
I think form 8582-CR is required to figure that out. Below is a link to the form instructions. There is a worksheet and examples.
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