Suspended losses will be shown and reported on the Sch E as an expenses which will produce a loss of ordinary income on the return ... it doesn't get put on the Sch D or form 4797 where the cap gain and depreciation recapture is reported ... but they do eventually net out. This is one of those times where you really need to use a paid tax pro so the situation can be better explained to you. When you use a DIY program you are really on your own and discussions in this forum may not be enough.
