8582-CR Passive Activity Credit Limitations

[G2R]

Anyone have experience with the 8582-CR form?  I have a new client.  She gets a credit each year from a partnership for Employer SS/MED taxes on the K-1, and she many years of disallowed credits that she's carried forward.  I think the previous accountant was using Drake, so I'm hoping some of the Drake users here might know.  When I'm calculating the 8582-CR, line 6 amount on page 1, ATX does NOT auto-calculate this for you, it wants me to calculate it.  I've manually calculated it, but when I go back and use my methodology to check myself on the previous returns filed, I don't get the number that's on that return so I'm second guessing my methods.  

Does Drake calculate this number for you?  And if is, do they show you somewhere HOW they calculated the number? 

My method of calculating follows the IRS instructions for 8582-CR.  Tax on Taxable Income with Net Passive Income MINUS Tax on Taxable Income without Net Passive Income.  Seems simple enough but perhaps there's a step I'm missing?  I'm using tax tables to calculate the tax for both. 

 

[Abby Normal]

Not a Drake user, but whenever I need a number like that. I do a with and without on the return to calc the difference.

[G2R]

On 5/13/2020 at 11:56 AM, Abby Normal said:

Not a Drake user, but whenever I need a number like that. I do a with and without on the return to calc the difference.

That was my only logically solution too so thanks for the reassurance.  I just always wonder, before computers were doing all these calculations for us, how in the world did accountants figure this stuff out?