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Form 8825 (Rev. 11-2018) Page 3
General Instructions owns two apartment buildings, each For each property, enter the number of
located in a different city. For purposes days rented at fair rental value and days
Section references are to the Internal of the passive activity limitations, the with personal use. For details, see
Revenue Code. partnership grouped both buildings into section 280A.
a single activity. Although the Line 9. Your interest expense may be
Future Developments partnership has only one rental real limited. See the instructions for Form
For the latest information about estate activity for purposes of the 8990, Business Interest Expense
developments related to Form 8825 and passive activity limitations, it must report Limitation Under Section 163(j), for more
its instructions, such as legislation the income and deductions for each information.
enacted after they were published, go to building in separate columns.
Line 14. The partnership or
www.irs.gov/Form8825. However, if the partnership or S corporation mayclaim a depreciation
S corporation has more than one rental deduction each year for rental property
Which Version To Use real estate activity for purposes of the (except for land, which is not
Use this November 2018 revision of passive activity limitations, attach a depreciable). If the partnership or
Form 8825 for tax years beginning in statement to Schedule K that reports S corporation placed property in service
2018 or later, until a later revision is the net income (loss) for each separate during the current tax year or claimed
issued. Use prior revisions of this form activity. Also, attach a statement to each depreciation on any vehicle or other
for earlier tax years. All revisions are Schedule K-1 that reports each partner’s listed property, complete and attach
available at www.irs.gov/Form8825. or shareholder’s share of the net income Form 4562, Depreciation and
(loss) by separate activity. See Passive Amortization. See Form 4562 and its
What’s New Activity ReportingRequirements in the instructions to figure the depreciation
instructions for Form 1065 or Form deduction.
• The Tax Reform Act of 2017 amended 1120S for additional information that
section 163(j) to reflect a limitation on must be provided for each activity. Paperwork Reduction Act Notice. We
business interest expense. For tax years
beginning after December 31, 2017, Complete lines 1 through 17 for each ask forthe information on this form to
business interest expense may be property. But complete lines 18a through carry out theInternal Revenue laws of
limited for certain taxpayers. See the 21 on only one Form 8825. The figures the United States. Youare required to
instructions for line 9. on lines 18a and 18b should be the give us the information. We needit to
combined totals for all forms. ensure that you are complying with these
• The Bipartisan Budget Act of 2015 laws and to allow us to figure and collect
repealed the electing large partnership Do not report on Form 8825 any of the
rules for tax years beginning after 2017. following. theright amount of tax.
As a result, the references to Form • Income or deductions from a trade or You are not required to provide the
1065-B, U.S. Return of Income for business activity or a rental activity other information requested on a form that is
Electing Large Partnerships, were than rental real estate. These items are subject to the Paperwork Reduction Act
removed. reported elsewhere. unless the form displays a valid OMB
control number. Books or records
Purpose of Form • Portfolio income or deductions. relating to a form or its instructions must
Partnerships andS corporations use • Section 179 expense deduction. be retained as long as their contents
may become material in the
Form 8825 to report incomeand • Other items that must be reported administration of any Internal Revenue
deductible expenses from rental real separately to the partners or law. Generally, tax returns and return
estateactivities, including net income shareholders. information are confidential, as required
(loss) from rentalreal estate activities • Commercial revitalization deductions. by section 6103.
that flow through frompartnerships,
estates, or trusts. Line 1. For each property, give the street The time needed to complete and file
address, city or town, and zip code. If this form will vary depending on
Before completing this form, be sure the property is located outside the individual circumstances. The estimated
to read the following. United States, give the postal code and burden for business taxpayers filing this
• Passive Activity Limitations in the country. Specify the type of property by form is approved under OMB control
instructions forForm 1065 or Form entering one of the following codes in number 1545-0123 and is included in the
1120S, especially for the definition of the “Type” column. estimates shown in the instructions for
“rental activity.” Codes their business income tax return.
• Extraterritorial Income Exclusion in the 1—Single Family Residence If you have comments concerning the
instructions for Form 1065 or 1120S. accuracy of these time estimates or
2—Multi-Family Residence suggestions for making this form
Specific Instructions 3—Vacation or Short-Term Rental simpler, we would be happy to hear from
you. See the instructions for the tax
Form 8825 provides spacefor up to 4—Commercial return with which this form is filed.
eight properties. If there are more than 5—Land
eight properties, attach additional Forms
8825. 6—Royalties
The number of columns to be used for 7—Self-Rental
reporting income and expenses on this 8—Other (include description with the
form may differ from the number of code on Form 8825 or on a separate
rental real estate activities the statement)
partnership or S corporation has for
purposes of the passive activity
limitations. For example, a partnership
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