lisaista
New Member

I'm selling a rental soon and want to understand how suspended passive losses work, at disposition can you fully deduct W2 income? https://www.irs.gov/taxtopics/tc425

I have will have a loss of 30K from the first year after deducting my mortgage interest and depreciation from rental income, and expect to continue to show loss the 2nd year. If I sell after the first year, will those 30K losses be released for me to deduct for my W-2 income? Would it also offset the 25% tax on depreciation recapture?