Part I—2025 Passive Activity Loss

Use Part I to combine the net income and net loss from all passive activities to determine if you have a passive activity loss (PAL) for 2025. Use Parts IV and V first to determine the entries for lines 1 and 2 of Part I, as follows.

• Use Part IV for rental real estate activities with active participation.

• Use Part V for all other passive activities.

Instructions for Form 8582 (2025) 9

Line 3. If you have prior-year unallowed commercial revitalization deductions (CRD) from rental real estate activities, treat that dollar amount as negative and combine with lines 1d and 2d. Enter the combined amount on line 3 and enter “CRD” and the dollar amount of the CRD (as a negative) on the dotted line.

Note: If you included prior-year unallowed CRD from rental real estate activities in line 3, and line 3 is a loss and line 1d is zero or more, go to the instructions for Part II, line 9, later.

Tip: If you need additional lines for any of the Parts IV through IX, you can either attach copies of the applicable pages of Form 8582, or your own schedule that’s in the same format as the applicable part(s).