Passive Activity Credit

Forum|Forum|9 months ago
September 18, 2025
2 replies
19 views

I have a client with a passive activity credit carryforward from 2023, the year the credit originated. Form 8582-CR for 2024 recognizes the carryforward from 2023 and reports an allowable credit on Line 37. However, the credit is not flowing to Form 3800 nor reducing the 2024 tax. After extensive review of 2023 and 2024 flow of information, I am still unable to determine what I am missing.

ProSeries Basic

IRonMaN

Level 15

I think you have to find the right spot to load it on the form 3800 worksheets to get it to flow properly. I normally spend a little time trying to figure out what I did last time to make the carryover flow properly,

Slava Ukraini!

R

REJ54Author

Level 2

I did spend some time analyzing the information flow, but I determined that my problem was a different issue. Thank you for responding.

T

TaxGuyBill

Level 15

Just checking ... is there tax from the passive income, so that the passive credit can be applied?

R

REJ54Author

Level 2

There was in fact no net passive income subject to tax in 2024. Passive income was generated in 2024 from one activity but was offset with an unallowed loss from 2023. Thank you for your response.

S

SkylarLB

Level 2

However the Form 8582-CR generates an allowable credit on Line 37, which does not flow to Form 3800.

It does however subtract this current credit from the carryforward unused credit reducing the amount to

carryforward to the next year. The allowed credit is not recorded anywhere in the current year. I am verry puzzled and have spent hours trying to resolve this.

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