New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

My client disposed of a passive activity this year, but the sale does not appear on Form 8582. Why?

Answer

The reporting requirements for total dispositions of passive activities are explained in the Form 8582 instructions in the "Reporting an Entire Disposition on Schedule D or Form 4797" section. According to the instructions, the following situations are not required to be reported on Form 8582 or the worksheets.

• The activity was disposed at an overall loss.
• The activity was disposed with an overall gain and was the only passive or former passive activity.

UltraTax CS reports the overall gain on disposal from only one passive activity on Form 8582 but will not print Form 8582. There are no effects on income, loss, or the tax calculation.

Related topic: 1041-US: Passive loss information FAQs

Was this article helpful?

Yes No

Submit