Question regarding long term capital gains and depreciation

[Andrew Syrios]

We are thinking of selling a couple houses we've owned for a few years and they will have fairly significant gains. We have a fairly large portfolio of other properties too though. Does the depreciation loss for those properties count against long term capital gains or does it only count against ordinary income/short term gains? 

Thank you in advance!

[Natalie Kolodij]

Quote from @Andrew Syrios:

We are thinking of selling a couple houses we've owned for a few years and they will have fairly significant gains. We have a fairly large portfolio of other properties too though. Does the depreciation loss for those properties count against long term capital gains or does it only count against ordinary income/short term gains? 

Thank you in advance!

If the rentals you're selling have suspended passive activity losses- those will totally free up in the year of sale and be deductible against the gain and whatever else. 

If you have other rentals with prior suspended losses, or losses in the year of sale those can offset the gain on the sale. 

There's more complexity to the ordering and such- but that's the meat and potatoes of the meal.