@DianeW777
I'm still working on this. Looked over the form and came across Form 8582 - Passive Activity Loss Limitations. Starting in section IV as per instructions:
Name of activity, i have listed property 1 and property 2 in each line.
a - Net income is only from prop 1, call it $100k, prop 2 is 0.
b - Net loss is 10k (each property has an entry)
c - Unallowed loss (from prior years) 50k, (each property has an entry)
Taking those numbers to section I which combines the total and results in:
1d 40K (positive number)
Section 3 states to combine 1d ($50k) and 2d (empty), if this line is zero or more, stop here and include this form with your return; all losses are allowed including any prior year unallowed losses.
So this seems to contradict your response, and states that suspended loses from the 2nd property are now allowed?
