How do I have suspended passive losses if my status is "nonpassive" and how do I get them released?

I'll try to keep the background info short, but I don't want to leave out anything important.

I'm a long term homeowner in Indiana. In 2020 I bought a second home in Florida, in preparation of retirement. 

In 2021, I rented the house out for 3 months (Jan - Mar), and had some personal use that year as well (over the 14 day, 10% limit). In 2021, my rental income was less than my expenses, so my net income on the rental was $0. My AGI in 2021 was too high to claim any of the Special $25,000 Rental Real Estate Loss Allowance, so I have some Passive Losses Carryover listed on a 2021 Schedule E worksheet, line L for Expenses and line M for depreciation. But the worksheet just above this one lists my Passive Status as "Nonpassive". I believe this is because I had some personal use of the house the same year. How do I have passive losses if the activity is nonpassive?

Fast forward to this year. Again, I rented the house out for 3 months (Jan - Mar) and again more expenses than income. But this year I sold the house in Indiana (8/20/22), made Florida my domicile state, and will convert the rental property in Florida to my main residence. My AGI in 2022 is between $100,000 and $150,000 so I should be able to capitalize on the Special $25,000 Rental Real Estate Loss Allowance, I believe.

Questions:

1) When can I release the suspended passive losses from 2021, and 2022? I know converting to personal use isn't enough to trigger, but when I do sell the house several years from now, it will be tax exempt, won't it?

 

2) I don't understand why I'm accumulating passive losses if my status is nonpassive.

 

3) I'm using desktop version of TT H&B. On the "Do any of These Situations Apply to This Property?" page, I tick the box for "I have passive activity real estate losses carried over from a prior year". Then on the next page I enter Sch E regular tax Carryover and AMT Carryover amounts, which I pulled from the 2021 Sch E worksheets mentioned before (and entered as negative numbers). When I did that, my 2022 forms looked like the carryover amounts were credited in two places. I wish I could post a picture, but I'll try and explain. On this 2021 Schedule E worksheet (Carryforward to 2022 Smart Worksheet) I have numbers on Line L (Vacation Home operating expenses) and Line M (Vacation Home Depreciation), but I DO NOT have anything on Line G (Schedule E suspended loss). So, when it asks me for my 2022 taxes if I have any "passive loss carryovers for this rental income which are reported on Schedule E", is the answer YES (because I have numbers on Line L and M), or NO (because line G is blank)?

 

4) Why am I not able to offset some of my losses from last year and this year since my AGI is under $150,000.

 

I think I have some flexibility in my "when did the property change from rental to residential" date. If I use the day after the last rental day (April 1) I wouldn't have any personal use dates during the period it was a rental. But if I use 8/20/22, the date I sold my house in Indiana became a Florida resident, my rental expenses would be higher, but I would have some personal use during these 8 months. But perhaps taking the first option would get me out of this passive vs. nonpassive conundrum.

 

Thanks in advance for any input.