Yes, according to ThomasM125 in his post, "The unused passive losses are used to reduce ordinary income in the current year. Depreciation is recaptured as ordinary income to the extent you have a gain on the sale of the property. So, indirectly the loss carryovers can be used against depreciation recaptured, since they are both ordinary income/loss."
To answer your question, the passive loss carryovers may not even out ordinary income resulting from a gain of a sale that has depreciation recapture. It may make the ordinary income from the sale smaller however. There is a difference however in the amount of accumulated depreciation being recaptured. If it is a large amount, the taxable gain on the sale of your house could be substantial and the passive loss carryovers may not be sizable enough to negate the gain.
Passive loss carryovers will reduce the ordinary income amount that is taxed at ordinary tax rates. These carryovers, in themselves are not taxed, but just used to reduce taxable gain. This is what ThomasM125 mentions in his previous post and how indirectly they play a part in reducing your taxable income from the sale of your property.
If your passive loss carryovers exceed the ordinary income from the sale reporting depreciation recapture, then your taxable income will be zero.
@wully691
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