I was a member in an LLC (business is rental real estate) and sold my entire interest to an unrelated party at a loss. I am currently not able to use recent operating losses due to passive activity limitation. I understand that upon disposition of a partnership interest to an unrelated party I can recognize both those passive activity losses in addition to the capital loss incurred upon the sale. My problem is I can't figure out how to enter this in TT. When I enter the basis in TT it reduces the basis amount on Form 8949 and Schedule D to reflect no gain on the sale. In addition I can't see where it's reclassified the passive nature of the operating losses to permit me to capture these losses. Any help would be very much appreciated!
