Commercial revitalization is the rehabilitation of a building in a distressed community. The commercial revitalization deduction (CRD) for rental real estate activities is not allowed for buildings placed in service after December 31, 2009.
Per the IRS Instructions for Form 8582, page 4:
Commercial revitalization deduction (CRD). The special $25,000 allowance for the CRD from rental real estate activities isn’t subject to the active participation rules or modified adjusted gross income limits just discussed. The $25,000 allowance must first be applied to losses from rental real estate activities with active participation, figured without regard to the CRD (see Part II, later). Any remaining portion of the $25,000 allowance is available for the CRD from rental real estate activities (see Part III, later). See the instructions for Worksheet 2.
Generally, you can claim a current year CRD for 2019, only if you, or a pass-through entity in which you were a partner or shareholder, had a CRD for a building placed in service before 2010 and elected to ratably claim a deduction for the CRD over a period of 120 months that included all or part of 2019.
Part III of Form 8582 is used to figure the maximum CRD allowed from a rental real estate activity. Married persons filing separate returns who lived with their spouses at any time during the year are not eligible for the special allowance. Married persons filing separate returns who lived apart from their spouses at all times during the year may still claim the deduction, but it is limited to $12,500 (and reduced by the amount, if any, on Form 8582, Line 10).