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State tax filing
Since you sold your property, and since you indicated that you had prior year passive activity losses (PAL's), you need to indicate that you have disposed of the activity. This will remove the activity from the 8582 (which exists only to calculate limitations on your PAL's). All previously suspended (deferred) PAL's from that activity will be allowed in the year of disposition -- for both federal and state purposes.
‎November 2, 2021
10:49 PM