Deferred Passive Losses
I have deferred passive losses on multiple rental properties that have accumulated over the last several years (let’s say around $50K). I recently sold one of these rental properties with a net capital gain of $120,000.
I have been getting conflicting answers as to whether I can offset this sale with the cumulative passive losses of the other properties. First off, I believe that I can offset the individual loss from the property sold.... (1) is this assumption true? About $40K of that deferred passive loss is from the property that I sold, (2) would the other losses also help to offset my $120K gain? (3) How far back can I go with all these deferred passive losses?
A bit complex but figured I would put it out to the community... thanks!