Since the sale of the property is through the limited partnership, the character of the gain will stay the same as the losses of the limited partnership (both will be considered passive if you are a limited partner in this partnership).
You will be able to offset this passive gain against passive losses in the current tax year. For example if you have $10,000 in losses on the sale of stock but also a $10,000 gain on a limited partnership investment, the two will completely offset each other. For more information about passive activities, please refer to IRS Publication 925.
If you still have passive income for the year, you can then use any passive loss carryovers from prior years to offset the remaining passive income (up to the total passive income for the tax year). Form K-1 from your limited partnership should have all the information you need related to this property sale. You can get directly to the K-1 input section of TurboTax by typing "K-1" in the search bar and click on the "jump to K-1" link (see attached screenshot).
Please note: you may fully deduct any remaining passive loss carryovers in the year you sell or dispose of your investment in your limited partnership. If you have passive income, you must complete Form 8582, Passive Activity Loss Limitations, to summarize income and losses from passive activities and compute the deductible losses.
Additionally, if you actively participated in real estate -- for example, you owned and managed a rental property -- you can deduct up to $25,000 of your passive real estate losses against your regular taxable income. This special $25,000 allowance decreases by 50 percent of the amount of your modified adjusted gross income that exceeds $100,000. It disappears completely if your modified adjusted gross income exceeds $150,000.
