@Goodwins1 wrote:
I checked with another independent tax pro (had to pay him of course) and he verified that partnership sale/liquidation was not necessary to deduct passive losses against capital gains.
You might want to ask the tax pro exactly how the return should be prepared (e.g., where on the return (which form(s)) would be used to report the passive loss).
Typically, excess suspended passive losses are not released until there is a complete disposition in a fully taxable transaction to a unrelated third party.
