Thank you for that clarification, and the additional facts supplied regarding the use of the property between 2012 and 2023. You are correct, when you sold the vacation home in 2023 you were unable to use the the PAL from the time it was a rental (2011 and prior). The PAL should be unchanged if this was there were no other PAL between 2012 and 2023 as well.
To the extent you have passive income in 2024 or a future year you can deduct the suspended PAL from 2011. If you have no other passive income, the PAL will remain suspended until the time you have passive income.
All the best,
Marc T.
TurboTax Live Tax Expert
27 Years of Experience Helping Clients
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