I am stuck on the form 8582--- I have the form 1040, schedule 1. Schedule D , Form 8849. schedule E all completed successfully.... I am stuck on the lines below that are highlighted on the form 8582 please explain how you go the answer as well.

Comprehensive Problem 4-2B In 2018, Professor Patricia (Patty) Pt retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 62 years old Patty lives at 98 Colander Street, Apt. 206D, Henderson, NV 89052. Professor Pt's Social Security number is 565-66-9378. In 2018, Patty had just a few months of salary from her previous job: Wages Federal tax withheld State tax withheld $9,800 450 Patty owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condo rented for 60 days of 2018 for $850 a month but a mold problem was discovered in the condo, her renters moved out, and she was unable to rent the apartment after the repairs (although she vigorously pursued new tenants). Patty actively manages the property herself. The following are the related expenses for the rental house: $3,900 9,100 561 Real estate taxes Mortgage interest Insurance Depreciation (assume fully depreciated) Homeowners Association dues Repairs Gardening Advertising 1,260 1,195 560 1,200 The condo was purchased on August 31, 1979. Professor Pt handles al rental activities (e.g., rent collection, finding tenants, etc.) herself In 2018, Patty sold her beloved home for almost 30 years for $380,000 on February 27, 2018. Her basis in the home was $120,000 and she acquired the home sometime in July of 1988 (she could not remember the day) Complete Professor Pt's Form 8582 (page 1). If required, use the minus sign to enter a "loss" as a negative number on the lines 1d and 4. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. OMB No. 1545-1008 Form 8582 Passive Activity Loss Limitations See separate instructions Attach to Form 1040 or Form 1041 Go to www.irs.gov/Form8582 for instructions and the latest information 2018 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Patricia Pt Attachment Sequence No. 88 Identifying number 565 66-9378 2018 Passive Activity Loss Part I Caution: Complete Worksheets 1, 2, and 3 before completing Part I Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions.) Activities with net income (enter the amount from Worksheet 1, column 1a 1a 16,076 V b Activities with net loss (enter the amount from Worksheet 1, column (b) 1b Prior years' unallowed losses (enter the amount from Worksheet 1, column c 1c 11d|| -16,076 | d Combine lines 1a, 1b, and 1c Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2, column (a) 2a [( b Prior year unallowed commercial revitalization deductions from Worksheet 2b column All Other Passive Activities Activities with net income (enter the amount from Worksheet 3, column 3a b Activities with net loss (enter the amount from Worksheet 3, column (b) 3b|( Prior years' unallowed losses (enter the amount from Worksheet 3, column c 3c Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with your return; all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c. Report the losses on the forms and schedules normally used . .. . . . . . . . . . . .. . . . . If line 4 is a loss and: Lie 1d is a loss, go to Part II 4 | 4 11-16,076 | . Line 2c is a loss (and line 1 d is zero or more), skip Part II and go to Part II . Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and and go to line 15. 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 or Part III. Instead, go to line 15 Special Allowance for Rental Real Estate Activities With Active Participation Part II Note: Enter all numbers in Part II as positive amounts. See instructions for an example. 16,076 5 Enter the smaller of the loss on line 1d or the loss on line 4.... . . . . 6 Enter $150,000. If married filing separately, see instructions . . . . . .. . . .6 7 Enter modified adjusted gross income, but not less than zero (see . . . . . 5 Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9, enter -o- on line 10. Otherwise, go to line 8 8 Subtract line 7 from line 6.. . . . . .. . . . . .. . . . . .. . . . . . . . . . ..8 Multiply line 8 by 50% (0.50). Do not enter more than $25,000. If married filing separately, see instructions 9 9 10 Enter the smaller of line 5 or line 9... . . . . . . .. . . . .. . . . . . . .. .. . .. . . .. ...1 1016,076 If line 2c is a loss, go to Part III. Otherwise, go to line 15 II Part Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities Note: Enter all numbers in Part III as positive amounts. See the example for Part II in the instructions. Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions Enter the loss from line4 Reduce line 12 by the amount on line 10....... . . . . . . . . . . . .. . . . . . . . . . . . . . . Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 11 12 13 14 13 14 Total Losses Allowed Part IV Add the income, if any, on lines 1a and 3a and enter the total. . Total losses allowed from all passive activities for 2018. Add lines 10, 14, and 15. See instructions to find out how to report the losses on your tax return . . . . . . 0 15 15 .. . . . . . . . . . . . . 16 16 -16,076 .. . . . . . . . . .. . For Paperwork Reduction Act Notice, see instructions. Form 8582 (2018) Cat. No. 63704F Schedule A-NOL (see instructions) Enter the amount from your 2018 Form 1040, line 10, or Form 1040NR, line 41. Estates and trusts, enter taxable income increased by the total of the charitable deduction, income distribution deduction, and exemption amount (see in 1 2 Nonbusiness capital losses before limitation. Enter as a positive number 3 Nonbusiness capital gains (without regard to any section 1202 exclusion) 4 If line 2 is more than line 3, enter the difference. Otherwise, enter -0- 5 f line 3 is more than line 2, enter the difference. 10,000 V 10,000 Otherwise, enter -0 6 Nonbusiness deductions (see instructions) 7 Nonbusiness income other than capital gains (see 8 Add lines 5 and 7 9 If line 6 is more than line 8, enter the difference. Otherwise, enter -0- 10 If line 8 is more than line 6, enter the difference. Otherwise, enter -0-. But don't enter more than line 5 Business capital losses before limitation. Enter as a positive number Business capital gains (without regard to any section 1202 exclusion) 10 11 12 13 Add lines 10 and 12 14 Subtract line 13 from line 11. If zero or less, enter-0-... .. . 15 Add lines 4 and 14 13 14 15 15 Add lines 4 and 14 0 Enter the loss, if any, from line 16 of your 2018 Schedule D (Form 1040). (Estates and trusts, enter the loss, if any, from line 19, column (3), of Schedule D (Form 1041)) Enter as a positive number. If you don't have a loss on that line (and don't have a section 1202 exclusion), skip lines 16 through 21 and enter on line 22 the amount from line 15. . . . . . . . . . . .. . . . . .. .. 16 0 16 17 Section 1202 exclusion. Enter as a positive number . . . . . . . . . . . . ._ . . . . ._ . . . . . . . . . . . . 18 Subtract line 17 from line 16. If zero or less, enter -0- .. . . . . . . . 18 19 Enter the loss, if any, from line 21 of your 2018 Schedule D (Form 1040). (Estates 17 and trusts, enter the loss, if any, from line 20 of Schedule D (Form 1041).) Enter as a positive number 19 20 If line 18 is more than line 19, enter the difference. Otherwise, enter -0- 21 If line 19 is more than line 18, enter t . . . . . . .. . . . . . . . . . . 21 22 Subtract line 20 from line 15. If zero or less, enter -0-.. . . . . . . . . . . . . . . . . . . .. . . . . .22 23 Domestic production activities deduction from your 2018 return. See instructions 24 NOL deduction for losses from other years. Enter as a positive number . . . . . . . . . . . . . . .. . .. .. 24 25 NOL. Combine lines 1, 9, 17, and 21 through 24. If the result is less than zero, enter it here and on page 1, 20 the difference. Otherwise, enter -o- 0 . .. . . . . . . . . . . . . 23 0 0 line 1a. If the result is zero or more, you don't have an NOL. . . . . . . . . . . .. . . . . . . . . . . 25 Comprehensive Problem 4-2B In 2018, Professor Patricia (Patty) Pt retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 62 years old Patty lives at 98 Colander Street, Apt. 206D, Henderson, NV 89052. Professor Pt's Social Security number is 565-66-9378. In 2018, Patty had just a few months of salary from her previous job: Wages Federal tax withheld State tax withheld $9,800 450 Patty owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condo rented for 60 days of 2018 for $850 a month but a mold problem was discovered in the condo, her renters moved out, and she was unable to rent the apartment after the repairs (although she vigorously pursued new tenants). Patty actively manages the property herself. The following are the related expenses for the rental house: $3,900 9,100 561 Real estate taxes Mortgage interest Insurance Depreciation (assume fully depreciated) Homeowners Association dues Repairs Gardening Advertising 1,260 1,195 560 1,200 The condo was purchased on August 31, 1979. Professor Pt handles al rental activities (e.g., rent collection, finding tenants, etc.) herself In 2018, Patty sold her beloved home for almost 30 years for $380,000 on February 27, 2018. Her basis in the home was $120,000 and she acquired the home sometime in July of 1988 (she could not remember the day) Complete Professor Pt's Form 8582 (page 1). If required, use the minus sign to enter a "loss" as a negative number on the lines 1d and 4. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. OMB No. 1545-1008 Form 8582 Passive Activity Loss Limitations See separate instructions Attach to Form 1040 or Form 1041 Go to www.irs.gov/Form8582 for instructions and the latest information 2018 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Patricia Pt Attachment Sequence No. 88 Identifying number 565 66-9378 2018 Passive Activity Loss Part I Caution: Complete Worksheets 1, 2, and 3 before completing Part I Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions.) Activities with net income (enter the amount from Worksheet 1, column 1a 1a 16,076 V b Activities with net loss (enter the amount from Worksheet 1, column (b) 1b Prior years' unallowed losses (enter the amount from Worksheet 1, column c 1c 11d|| -16,076 | d Combine lines 1a, 1b, and 1c Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2, column (a) 2a [( b Prior year unallowed commercial revitalization deductions from Worksheet 2b column All Other Passive Activities Activities with net income (enter the amount from Worksheet 3, column 3a b Activities with net loss (enter the amount from Worksheet 3, column (b) 3b|( Prior years' unallowed losses (enter the amount from Worksheet 3, column c 3c Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with your return; all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c. Report the losses on the forms and schedules normally used . .. . . . . . . . . . . .. . . . . If line 4 is a loss and: Lie 1d is a loss, go to Part II 4 | 4 11-16,076 | . Line 2c is a loss (and line 1 d is zero or more), skip Part II and go to Part II . Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and and go to line 15. 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 or Part III. Instead, go to line 15 Special Allowance for Rental Real Estate Activities With Active Participation Part II Note: Enter all numbers in Part II as positive amounts. See instructions for an example. 16,076 5 Enter the smaller of the loss on line 1d or the loss on line 4.... . . . . 6 Enter $150,000. If married filing separately, see instructions . . . . . .. . . .6 7 Enter modified adjusted gross income, but not less than zero (see . . . . . 5 Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9, enter -o- on line 10. Otherwise, go to line 8 8 Subtract line 7 from line 6.. . . . . .. . . . . .. . . . . .. . . . . . . . . . ..8 Multiply line 8 by 50% (0.50). Do not enter more than $25,000. If married filing separately, see instructions 9 9 10 Enter the smaller of line 5 or line 9... . . . . . . .. . . . .. . . . . . . .. .. . .. . . .. ...1 1016,076 If line 2c is a loss, go to Part III. Otherwise, go to line 15 II Part Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities Note: Enter all numbers in Part III as positive amounts. See the example for Part II in the instructions. Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions Enter the loss from line4 Reduce line 12 by the amount on line 10....... . . . . . . . . . . . .. . . . . . . . . . . . . . . Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 11 12 13 14 13 14 Total Losses Allowed Part IV Add the income, if any, on lines 1a and 3a and enter the total. . Total losses allowed from all passive activities for 2018. Add lines 10, 14, and 15. See instructions to find out how to report the losses on your tax return . . . . . . 0 15 15 .. . . . . . . . . . . . . 16 16 -16,076 .. . . . . . . . . .. . For Paperwork Reduction Act Notice, see instructions. Form 8582 (2018) Cat. No. 63704F Schedule A-NOL (see instructions) Enter the amount from your 2018 Form 1040, line 10, or Form 1040NR, line 41. Estates and trusts, enter taxable income increased by the total of the charitable deduction, income distribution deduction, and exemption amount (see in 1 2 Nonbusiness capital losses before limitation. Enter as a positive number 3 Nonbusiness capital gains (without regard to any section 1202 exclusion) 4 If line 2 is more than line 3, enter the difference. Otherwise, enter -0- 5 f line 3 is more than line 2, enter the difference. 10,000 V 10,000 Otherwise, enter -0 6 Nonbusiness deductions (see instructions) 7 Nonbusiness income other than capital gains (see 8 Add lines 5 and 7 9 If line 6 is more than line 8, enter the difference. Otherwise, enter -0- 10 If line 8 is more than line 6, enter the difference. Otherwise, enter -0-. But don't enter more than line 5 Business capital losses before limitation. Enter as a positive number Business capital gains (without regard to any section 1202 exclusion) 10 11 12 13 Add lines 10 and 12 14 Subtract line 13 from line 11. If zero or less, enter-0-... .. . 15 Add lines 4 and 14 13 14 15 15 Add lines 4 and 14 0 Enter the loss, if any, from line 16 of your 2018 Schedule D (Form 1040). (Estates and trusts, enter the loss, if any, from line 19, column (3), of Schedule D (Form 1041)) Enter as a positive number. If you don't have a loss on that line (and don't have a section 1202 exclusion), skip lines 16 through 21 and enter on line 22 the amount from line 15. . . . . . . . . . . .. . . . . .. .. 16 0 16 17 Section 1202 exclusion. Enter as a positive number . . . . . . . . . . . . ._ . . . . ._ . . . . . . . . . . . . 18 Subtract line 17 from line 16. If zero or less, enter -0- .. . . . . . . . 18 19 Enter the loss, if any, from line 21 of your 2018 Schedule D (Form 1040). (Estates 17 and trusts, enter the loss, if any, from line 20 of Schedule D (Form 1041).) Enter as a positive number 19 20 If line 18 is more than line 19, enter the difference. Otherwise, enter -0- 21 If line 19 is more than line 18, enter t . . . . . . .. . . . . . . . . . . 21 22 Subtract line 20 from line 15. If zero or less, enter -0-.. . . . . . . . . . . . . . . . . . . .. . . . . .22 23 Domestic production activities deduction from your 2018 return. See instructions 24 NOL deduction for losses from other years. Enter as a positive number . . . . . . . . . . . . . . .. . .. .. 24 25 NOL. Combine lines 1, 9, 17, and 21 through 24. If the result is less than zero, enter it here and on page 1, 20 the difference. Otherwise, enter -o- 0 . .. . . . . . . . . . . . . 23 0 0 line 1a. If the result is zero or more, you don't have an NOL. . . . . . . . . . . .. . . . . . . . . . . 25