Complete page 1 of Justin's Form 8582 for 2022. Assume the amount from Worksheet 1, column (a) is $1,455. Form 8582 Department of the Treasury Internal Revenue Service Passive Activity Loss Limitations See separate instructions. Attach to Form 1040, 1040-SR, or 1041. Go to www.irs.gov/Form8582 for instructions and the latest information. OMB No. 1545-1008 2022 Attachment Sequence No. 858 Name(s) shown on return Justin Stone Identifying number 111-11-1118 Part I 2022 Passive Activity Loss Caution: Complete Parts IV and V before completing Part I. Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions.) 1a Activities with net income (enter the amount from Part IV, column (a)) . . . . . . . 1a fill in the blank db0e8e091fda02d_1 1,455 b Activities with net loss (enter the amount from Part IV, column (b)) . . . . . . . . . 1b () c Prior years' unallowed losses (enter the amount from Part IV, column (c)) . . . . 1c () d Combine lines 1a, 1b, and 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1d fill in the blank db0e8e091fda02d_2 1,455 All Other Passive Activities 2a Activities with net income (enter the amount from Part V, column (a)) . . . . . . . . 2a b Activities with net loss (enter the amount from Part V, column (b)) . . . . . . . . . . 2b () c Prior years' unallowed losses (enter the amount from Part V, column (c)) . . . . . . 2c () d Combine lines 2a, 2b, and 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d 3 Combine lines 1d and 2d. If this line is zero or more, stop here and include this form with your return; all losses are allowed, including any prior year unallowed losses entered on line 1c or 2c. Report the losses on the forms and schedules normally used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 fill in the blank db0e8e091fda02d_3 1,455 If line 3 is a loss and: • Line 1d is a loss, go to Part II. • Line 2d is a loss (and line 1d is zero or more), skip Part II and go to line 10. Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II. Instead, go to line 10. Part II Special Allowance for Rental Real Estate Activities With Active Participation Note: Enter all numbers in Part II as positive amounts. See instructions for an example. 4 Enter the smaller of the loss on line 1d or the loss on line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Enter $150,000. If married filing separately, see instructions . . . . . . . . . . . . . . . 5 6 Enter modified adjusted gross income, but not less than zero. See instructions . 6 fill in the blank db0e8e091fda02d_4 Note: If line 6 is greater than or equal to line 5, skip lines 7 and 8 and enter -0- on line 9. Otherwise, go to line 7. 7 Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Multiply line 7 by 50% (0.50). Do not enter more than $25,000. If married filing separately, see instructions 8 9 Enter the smaller of line 4 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 fill in the blank db0e8e091fda02d_5 0 Part III Total Losses Allowed 10 Add the income, if any, on lines 1a and 2a and enter the total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 Total losses allowed from all passive activities for 2022. Add lines 9 and 10. See instructions to find out how to report the losses on your tax return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Part IV Complete This Part Before Part I, Lines 1a, 1b, and 1c. See instructions. Name of activity Current year Prior years Overall gain or loss (a) Net income (line 1a) (b) Net loss (line 1b) (c) Unallowed loss (line 1c) (d) Gain (e) Loss Apartment Building fill in the blank db0e8e091fda02d_7 1,455 fill in the blank db0e8e091fda02d_8 1,455 Total. Enter on Part I, lines 1a, 1b, and 1c . . . fill in the blank db0e8e091fda02d_9 1,455 BAA For Paperwork Reduction Act Notice, see instructions. Form 8582 (2022)

Let's complete page 1 of Justin's Form 8582 for 2022 using the information provided: ### Part I: 2022 Passive Activity Loss **Rental Real Estate Activities With Active Participation** 1. **Line 1a:** Activities with net income: $1,455 (from Worksheet 1, column (a)) 2. **Line 1b:** Activities with net loss: $0 (since no loss is mentioned) 3. **Line 1c:** Prior years' unallowed losses: $0 (since no prior unallowed losses are mentioned) 4. **Line 1d:** Combine lines 1a, 1b, and 1c: $1,455 **All Other Passive Activities** 5. **Line 2a:** Activities with net income: $0 (no other passive activities mentioned) 6. **Line 2b:** Activities with net loss: $0 7. **Line 2c:** Prior years' unallowed losses: $0 8. **Line 2d:** Combine lines 2a, 2b, and 2c: $0 9. **Line 3:** Combine lines 1d and 2d: $1,455 Since line 3 is greater than zero, all passive activity losses are allowed, and you can report them on the forms and schedules normally used. ### Part II: Special Allowance for Rental Real Estate Activities With Active Participation

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