It seems there are a couple of different tax scenarios that will affect the amount that is deducted:
- If you are certain the original deduction originated on 2017, then the carryover amount to 2018 may have been $6638
- If it is only a total loss in 2017 of $6638, then you are correct that 2019 would only have $638 remaining as the carryover loss from 2018.
- However, if you have other capital losses in 2019, then the maximum capital loss deduction of $3000 may have been met.(which includes the $638 carryover form 2017).
The following is in reference to the Section 469.
Disposing of a passive activity allows suspended passive losses to be deducted
- When a taxpayer disposes of the entire interest in a passive activity, that activity is no longer subject to the passive activity rules.
- If the activity is disposed of in a fully taxable (as opposed to tax-deferred) transaction to an unrelated party, both current and suspended passive activity losses generated by that activity (as well as any loss on the disposition) can be deducted (Sec. 469(g)(1)).
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