Passive Activity Credits on disposal of an activity

According to the Dispositions section of the IRS Form 8582-CR Instructions:
Unallowed PACs, unlike unallowed passive activity losses, are not allowed when you dispose of your interest in an activity
.
When you dispose of an activity in UltraTax CS with a disallowed passive credit carryforward, the activity will proforma to keep the passive credits available to use against other passive income. This follows the Form 8582-CR instructions.
If you still want to take the unallowed PAC (Passive Activity Credit), you can enter the credit in the Credits folder that's not related with a particular activity.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close