OK it becomes more interesting. Someone asked a very similar question https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/suspended-passive-los... and @DianeW777 answered the same as you.
However ChatGPT thinks differently: "If Property A is no longer considered a passive activity (e.g., you converted it to personal use or business use) The suspended losses from A cannot be used against B’s income." and it pointed to "Activities That Aren’t Passive Activities" of Pub 925 for the reason.
After reading that section I am leaning towards what ChatGPT said. Since the section said "The following aren’t passive activities... 3. The rental of a dwelling unit that you also used for personal purposes during the year for more than the greater of 14 days or 10% of the number of days during the year that the home was rented at a fair rental. ... You shouldn’t enter income and losses from these activities on Form 8582, as they are not passive activities. " Since I can't enter it on Form 8582, then I can't use it to offset any income from property B. The loss can only be used when I sell A.
I want to hear what you think @AmeliesUncle and @DianeW777 -- thanks!
Also note that I was not asking about the year that I converted the A into personal use; I was asking about the next year when I rented out A for 0 days.
