Yes, the Passive Activity Loss rules are lifted when you dispose of the property. So, many taxpayers with income over $150k experience a large deductible loss in the year of sale due to a release of suspended losses. On the contrary, there is also typically a gain on the sale of the property itself.
If this was your only property, you could no longer have a Form 8582 carryover. Its all used up in 2016.
From 8582 instructions:
Disposition of an Entire InterestIf you disposed of your entire interest in a passive activity or a former passive activity to an unrelated person in a fully taxable transaction during the tax year, your losses allocable to the activity for the year are not limited by the PAL rules.
https://www.irs.gov/instructions/i8582/ch01.html#d0e884
