Investors & landlords

When you dispose of rental property to a third party in a fully taxable transaction, all suspended (disallowed) passive losses are released; there are no carryovers.

 

You may, however, have had an NOL (net operating loss) as a result of the sale in 2018 so you should check your 2018 return and calculate a NOL (if necessary).

 

See https://www.irs.gov/publications/p536#en_US_2019_publink1000177330