Thanks. Can I ask you to explain what you said, "when a passive activity is disposed of the losses are no longer passive. upon complete disposition of the activity any suspended losses are allowed"? Do you mean that I can use the suspended, accumulated and carried forward passive losses in K-1's to offset the gains from sale of rental property? Thanks. BTW, the K-1's are for the passive investments in apartment communities and there are capital losses in the beggining of the investments due to renovation cost.
