It is not forfeited. You can still carryover as long as there has not been an event where it could have been applied.

You can only deduct suspended passive-activity losses in 2 situations:

    Against passive-activity income

    When you dispose of the passive activity in a fully taxable transaction to an unrelated party

When you converted rental property into a personal home. The rental home had suspended passive-activity losses. So, you can continue to deduct the suspended passive-activity losses from other passive income. If you have no other passive income, the suspended losses remain suspended. Carry them forward until you sell the home in a fully taxable transaction.