are you certain the gain from the sale is qualified this way? I follow the logic you outlined, if the gain is "passive income" instead of just standard long term capital gain I guess it makes sense that it offsets suspended passive loses on other properties.
reading a few other posts seems to contradict this but i'm not sure. the most convincing contradiction i found is that the gain from the sale is a long term cap gain taxed at 15%, but the suspended losses (if allowed) typically offset income, which is taxed at a different rate, no?
