Purpose of Form

Form 8582-CR is used by noncorporate taxpayers to figure the amount of any passive activity credit (PAC) for the current tax year (including any prior year unallowed credits) and the amount of credit allowed for the current year. It is also used to make the election to increase the basis of credit property when a taxpayer disposes of his or her interest in an activity.

PACs that aren’t allowed in the current year are carried forward until they are allowed against the tax on either net passive income or the special allowance, if applicable.

If you are married filing jointly, one spouse must separately meet both 2a and 2b without taking into account services performed by the other spouse.

• General business credits.

• Qualified plug-in electric and electric vehicle credit.