Thank you so much for the clear answer!
I have one more related question (who doesnt here 🙂 , I hope this answer will be of help both to me and others:
The exchanged-from investment has accumulated a loss from rental activities of ~50k over the last few years; these passsive losses have been accumulating on form 8582 in my federal returns. Now I have a "final" K-1 form from them (but note that they are doing a 1031 exchange).
Ideally I want to "take" that loss in this year, which would reduce the proffit from my active rental activities (yes, I have such profits!).
In Turbotax desktop, when I check the box "This partnership ended in 2022", on the next screen the help page says: "If a passive activity or former passive activity is involved in a like-kind exchange, the activity should NOT be considered fully disposed of, and current year losses and passive carryovers are still subject to the passive activity loss rules".
Based, on that text, I cannot "take" any of the $50k loss in this year. So it will be carried over to future years, yes? What is the idea with that: will I ever be able to "take" some of that passive loss?
Thank you!
