@stanley1231 wrote:
However ChatGPT thinks differently:
ChatGPT can be helpful, but it is often misleading or outright wrong, including in this case.
The losses are still suspended passive losses. Just because the activity is no longer passive, does not retroactively change the prior losses to be non-passive.
In addition to offsetting passive income, if the "former" passive activity had income (such as the scenario that you mentioned where a rental was also used for 14+ days of personal use), the suspended losses can also offset that income.
