Yes, you can deduct your suspended Passive Activity Loss from the sale proceeds. If you sell a rental property with suspended PALs, you may be able to deduct them on top of deducting any Section 1231 loss from the sale. Like Section 1231 losses, deductible PALs can offset other income and also create or increase an NOL that you can carry backward or forward. They are added to the Cost Basis at time of sale.
TurboTax carries over you PAL from year to year, so you don't have to calculate this.
Here's more info on Selling Rental Property at a Loss.
@drdesaulniers
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