User's Manual - Drake Software

Drake Software User’s Manual
Passive Activity Credits
2. After making TSJ and ST selections as applicable, select a screen from the For
list to indicate the screen with which the credit carryforward should be associated.
NOTE
If the return has multiple screens for the form selected in the For
drop list, use the multi-form code (MFC) text box. (See “Associating
One Screen with Another” on page 73.)
3. Select a credit form from the Form drop list.
4. Enter the carryforward amount for the selected credit.
When the return is calculated, the carryforward amounts flow to lines 3b and 4b (and
1b, if applicable) of Form 8582-CR and to the corresponding worksheets, and the
allowed credit amounts flow to Part III of Form 3800.
NOTE
Amounts on lines 3a and 4a (credits from Worksheets 3 and 4) flow
from the screen (K1P, K1S, etc.) associated with the PACR screen.
Worksheets
3 and 4
When a carryforward amount is linked from the PACR screen to another screen, the
program produces one of two worksheets for the following lines of Form 8582-CR:
• Lines 3a and 3b (for low-income housing credits for property placed in service
after 1989)
• Lines 4a and 4b (for all other passive activity credits)
NOTE
In View mode, these worksheets are WK_CR3 and WK_CR4.
Each worksheet shows the name of the activity (partnership, S corporation, etc.), the
associated form, the current- and prior-year credits, and the total credits. Figure 5-38
shows an example from Worksheet 3 for lines 3a and 3b.
Figure 5-38: Drake displays the name of the entity (such as partnership or S corporation)
with which the credit is associated in data entry.
Form 8582-CR, Passive Activity Credit Limitations
Form 8582-CR is calculated using the credit carryforward amounts from the PACR
screen rather than from individual credit screens. Use screen CR in Drake to access
other fields for Form 8582-CR, Passive Activity Credit Limitations.
Tax Year 2012 145