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Investors & landlords
Passive activity losses can only be:
- deducted against passive income; or
- taken when you sell the property in a fully taxable transaction to an unrelated party.
Since you converted your rental property to personal use, you can continue to deduct the losses against any passive income you may have. The balance continues to be carried forward until you sell the property in a fully taxable transaction.
March 5, 2021
2:09 PM