If you have net passive losses, you are required to carry it forward until you can offset the losses with passive gains, or you sell the rental property, in which case you will then be able to fully deduct the unused passive losses in the year the property was sold.
Comment by
jseah114
6 Dec 2009
If you have net passive losses, you are required to carry it forward until you can offset the losses with passive gains, or you sell the rental property, in which case you will then be able to fully deduct the unused passive losses in the year the property was sold.