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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Under Worksheet 5-Allocation of Unallowed Losses of Form

Customer Question

Under Worksheet 5-Allocation of Unallowed Losses of Form 8582 where it says "Form or schedule and line number to be reported on (see instructions)," does one put a figure here or does one put words here such as "Schedule E P+2?" What does P + 2 mean? If Form 8582 is completed, does Schedule E need to be completed at all? Are there any exceptions when schedule E does not need to be completed? Thank you.
Submitted: 1 year ago.
Category: Tax
Expert:  ABC Accounting Group replied 1 year ago.

Hi. Great Questions.

First one - just the words, no $ amount.

Expert:  ABC Accounting Group replied 1 year ago.

Second question - the 8582 measures your participation in a business. The Schedule E is usually used. The only time you have passive income/loss and it does not need to be on Schedule E is from other income not associated with a rental, partnership, s-corporation, estate, or a trust, for instance. For example, gambling income/losses, income from doing a test or survey, etc.

Customer: replied 1 year ago.
If I have a loss of $1,917.00 on Form 8582, do I need to complete schedule E? What does P + 2 mean? Thank you.
Expert:  ABC Accounting Group replied 1 year ago.

The allowed losses (line 16) is reported on Schedule E. p+2 - page and line number

Expert:  ABC Accounting Group replied 12 months ago.

Let me know if you have any questions. Thank you.