Anonymous
Not applicable

Investors & landlords

the loss can not be deducted.    schedule E rental profits are allocated among schedule e rental losses so what you  end up with is that the net losses are only attributable to those with losses.   there should be a supporting worksheet for form 8582 showing the losses are solely attributable to property 2.   therefore disposing of property 1 in and of itself will not free up the passive loss carryover.