New York IT-182 Form, Passive Activity Loss Limitations For Nonresidents And Part-Year Residents, is used to calculate how much passive activity loss from New York sources can be allowed on a New York nonresident, part-year resident, estate, or trust return. Passive activity losses usually come from rental real estate activities, business activities in which the taxpayer does not materially participate, or other investment-style activities that produce losses. Even though New York generally follows federal passive activity loss rules, nonresidents and part-year residents must recalculate those limits using only income, gains, losses, and deductions connected with New York sources. This means a taxpayer could have a different passive activity loss result for New York than for federal tax purposes. Form IT-182 organizes those activities into rental real estate activities with active participation, all other passive activities, special rental real estate allowances, total losses allowed, unallowed losses, and allowed losses. The final result helps determine what amount should be reported on Form IT-203 or Form IT-205.
How To File New York IT-182 Form
Submit New York IT-182 with Form IT-203 if you are filing as a nonresident or part-year resident individual. Submit it with Form IT-205 if the return is for an estate or trust.
Before completing Form IT-182, complete the federal passive activity loss calculation using federal Form 8582. Then use only the activities connected with New York sources to complete the New York form.
If you were not required to file federal Form 8582 because of a federal exception, still complete the federal calculation worksheets as if federal Form 8582 were required. Then transfer only the New York source passive activity information to Form IT-182.
Keep a copy of Form IT-182 and related worksheets with your tax records. You should keep these records for three years after the sale or final disposition of every activity included on the form.
How To Complete New York IT-182 Form
Top Information Section
Name As Shown On Return: Enter the taxpayer’s name exactly as it appears on Form IT-203 or Form IT-205.
Identifying Number As Shown On Return: Enter the same Social Security number, taxpayer identification number, or employer identification number used on the return.
Part I, Passive Activity Loss
Use Part I to combine the New York source income and loss from passive activities. Amounts for rental real estate with active participation come from Part IV. Amounts for all other passive activities come from Part V.
Rental Real Estate Activities With Active Participation
Line 1a: Enter the total net income from rental real estate activities with active participation. Use the total from Part IV, column (a).
Line 1b: Enter the total net loss from rental real estate activities with active participation. Use the total from Part IV, column (b).
Line 1c: Enter prior year unallowed losses for rental real estate activities with active participation. Use the total from Part IV, column (c).
Line 1d: Add Lines 1a, 1b, and 1c. Enter the result here. This shows the combined result for rental real estate activities with active participation.
All Other Passive Activities
Line 2a: Enter the total net income from all other passive activities. Use the total from Part V, column (a).
Line 2b: Enter the total net loss from all other passive activities. Use the total from Part V, column (b).
Line 2c: Enter prior year unallowed losses from all other passive activities. Use the total from Part V, column (c).
Line 2d: Add Lines 2a, 2b, and 2c. Enter the result here. This shows the combined total for all other passive activities.
Line 3: Add Line 1d and Line 2d. Then subtract any prior year unallowed commercial revitalization deduction if it applies. If Line 3 is zero or more, stop after this line and submit the form with your return because all losses are allowed. If Line 3 is a loss and Line 1d is also a loss, continue to Part II. If Line 3 is a loss but Line 1d is zero or more and Line 2d is a loss, skip Part II and go to Part III, Line 10.
Married Filing Separately 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 directly to Line 10.
Part II, Special Allowance For Rental Real Estate Activities With Active Participation
Use Part II only when you have a net loss from rental real estate activities with active participation and you may qualify for the special allowance. Enter all numbers in this part as positive amounts.
Line 4: Enter the smaller amount between the loss shown on Line 1d and the loss shown on Line 3. Use the loss amount as a positive number.
Line 5: Enter 150,000. If you are married filing separately and lived apart from your spouse for the entire year, enter 75,000 instead.
Line 6: Enter your federal modified adjusted gross income, but do not enter less than zero. For New York purposes, use only amounts derived from or connected with New York sources. If Line 6 is greater than or equal to Line 5, skip Lines 7 and 8 and leave Line 9 blank.
Line 7: Subtract Line 6 from Line 5. Enter the result here.
Line 8: Multiply Line 7 by 50%, or 0.5. Do not enter more than 25,000. If you are married filing separately and lived apart from your spouse for the entire year, do not enter more than 12,500.
Line 9: Enter the smaller amount from Line 4 or Line 8. If Line 3 includes any prior year unallowed commercial revitalization deduction, apply the related federal passive activity loss rules before completing this line.
Part III, Total Losses Allowed
Use Part III to calculate the amount of New York source passive activity loss allowed for the current year.
Line 10: Add the income amounts, if any, from Lines 1a and 2a. Enter the total here.
Line 11: Add Line 9 and Line 10. This is the total passive activity loss allowed from all passive activities for the year. Report the allowed amounts on the New York State amount column of Form IT-203 or on Form IT-205-A when filing a fiduciary return.
Part IV, For Part I Lines 1a, 1b, And 1c
Use Part IV for rental real estate activities with active participation. Complete one row for each activity or property.
Name Of Activity Or Property Description And Address: Enter the activity name or describe the property. Include the property address when applicable.
Date Of Acquisition: Enter the date you acquired the activity or property.
Date Of Sale: Enter the sale date if the activity or property was sold during the year. Leave it blank if there was no sale.
Column (a), Current Year Net Income: Enter the current year net income from that activity. These amounts are totaled and carried to Line 1a.
Column (b), Current Year Net Loss: Enter the current year net loss from that activity. These amounts are totaled and carried to Line 1b.
Column (c), Prior Years Unallowed Loss: Enter the prior year unallowed loss for that activity. These amounts are totaled and carried to Line 1c.
Column (d), Overall Gain: Enter the overall gain if the activity or property was disposed of and the final result is a gain.
Column (e), Overall Loss: Enter the overall loss if the activity or property was disposed of and the final result is a loss.
Part IV Totals: Add Columns (a), (b), and (c). Enter the totals on Part I, Lines 1a, 1b, and 1c.
Part V, For Part I Lines 2a, 2b, And 2c
Use Part V for passive activities other than rental real estate activities with active participation.
Name Of Activity Or Property Description And Address: Enter the name of the passive activity or describe the property. Include the address if applicable.
Date Of Acquisition: Enter the date you acquired the activity or property.
Date Of Sale: Enter the sale date if the activity or property was sold during the year.
Column (a), Current Year Net Income: Enter the current year net income from the activity. Total this column and carry it to Line 2a.
Column (b), Current Year Net Loss: Enter the current year net loss from the activity. Total this column and carry it to Line 2b.
Column (c), Prior Years Unallowed Loss: Enter prior year unallowed losses from the activity. Total this column and carry it to Line 2c.
Column (d), Overall Gain: Enter the overall gain if the activity was sold or otherwise disposed of.
Column (e), Overall Loss: Enter the overall loss if the activity was sold or otherwise disposed of.
Part V Totals: Add Columns (a), (b), and (c). Enter the totals on Part I, Lines 2a, 2b, and 2c.
Part VI, Use This Part If An Amount Is Shown On Part II Line 9
Use Part VI to allocate the special allowance from Part II among the rental real estate activities that produced losses.
Name Of Activity Or Property Description And Address: Enter the activity or property connected to the rental real estate loss.
Form Or Schedule And Line Number To Be Reported On: Enter the tax form, schedule, and line where the loss will be reported.
Column (a), Loss: Enter the loss amount for the activity.
Column (b), Ratio: Divide the activity’s loss by the total losses in Column (a). Enter the ratio for each activity. The total ratio should equal 1.00.
Column (c), Special Allowance: Multiply the ratio in Column (b) by the special allowance amount from Part II, Line 9. Enter the result for each activity.
Column (d), Subtract Column (c) From Column (a): Subtract the special allowance in Column (c) from the loss in Column (a). Enter the remaining amount.
Part VI Totals: Total Column (a), confirm Column (b) equals 1.00, total Column (c), and total Column (d).
Part VII, Allocation Of Unallowed Losses
Use Part VII to allocate losses that are not allowed for the current year and must be carried forward.
Name Of Activity Or Property Description And Address: Enter the name or description of the activity or property with an unallowed loss.
Form Or Schedule And Line Number To Be Reported On: Enter the form, schedule, and line where the activity is reported.
Column (a), Loss: Enter the loss amount subject to allocation.
Column (b), Ratio: Divide each activity’s loss by the total losses in Column (a). The total ratio should equal 1.00.
Column (c), Unallowed Loss: Multiply the ratio by the total unallowed loss to allocate the proper unallowed amount to each activity.
Part VII Totals: Add Column (a), confirm Column (b) equals 1.00, and add Column (c).
Part VIII, Allowed Losses
Use Part VIII to show the final allowed loss for each activity.
Name Of Activity Or Property Description And Address: Enter the activity name or property description and address.
Form Or Schedule And Line Number To Be Reported On: Enter where the allowed loss will be reported on the related tax form or schedule.
Column (a), Loss: Enter the full loss for the activity.
Column (b), Unallowed Loss: Enter the portion of the loss that is not allowed this year.
Column (c), Allowed Loss: Subtract Column (b) from Column (a). Enter the allowed loss for the current year.
Part VIII Totals: Add Columns (a), (b), and (c). These totals support the allowed loss amount reported on the return.
Part IX, Activities With Losses Reported On Two Or More Different Forms Or Schedules
Use Part IX when one passive activity has losses reported on more than one form or schedule. Complete a separate block for each activity.
Name Of Activity Or Property Description And Address: Enter the activity name or property description and address for the activity reported on multiple forms or schedules.
Column (a): Use this column to show the loss amount connected with the form or schedule line being reported.
Column (b): Use this column as part of the activity loss allocation calculation.
Column (c), Ratio: Enter the ratio used to divide the activity’s loss between the different forms or schedules. The total ratio should equal 1.00.
Column (d), Unallowed Loss: Enter the portion of the loss that is not allowed for the year.
Column (e), Allowed Loss: Enter the portion of the loss that is allowed for the year.
Form Or Schedule And Line Number To Be Reported On, First Block: Enter the first form or schedule and line number where part of the activity loss is reported.
Line 1a, First Block: Enter the net loss plus prior year unallowed loss from that form or schedule.
Line 1b, First Block: Enter the net income from that form or schedule.
Line 1c, First Block: Subtract Line 1b from Line 1a. If the result is zero or less, leave this line blank.
Form Or Schedule And Line Number To Be Reported On, Second Block: Enter the second form or schedule and line number where another part of the same activity loss is reported.
Line 1a, Second Block: Enter the net loss plus prior year unallowed loss from the second form or schedule.
Line 1b, Second Block: Enter the net income from the second form or schedule.
Line 1c, Second Block: Subtract Line 1b from Line 1a. If the result is zero or less, leave this line blank.
Form Or Schedule And Line Number To Be Reported On, Third Block: Enter the third form or schedule and line number if another part of the same activity loss is reported elsewhere.
Line 1a, Third Block: Enter the net loss plus prior year unallowed loss from the third form or schedule.
Line 1b, Third Block: Enter the net income from the third form or schedule.
Line 1c, Third Block: Subtract Line 1b from Line 1a. If the result is zero or less, leave this line blank.
Part IX Totals: Add the loss amounts and allocation amounts for the activity. Confirm the ratio total equals 1.00 and use the unallowed and allowed loss columns to support the final amounts reported on the return.
Final Review Before Filing
Review every number before submitting New York IT-182. Make sure all activities included are connected with New York sources, the totals from Parts IV and V match Part I, and the allowed loss amount on Line 11 is properly supported by Parts VI through IX. If you are a part-year resident, confirm that the resident and nonresident period calculations use only the correct income, gain, loss, and deduction items for each period. Attach Form IT-182 to Form IT-203 or Form IT-205, and keep a copy with your records.