Also one followup question... I own multiple rental properties. Will I have to have a complete disposition of all assets to be able to recoup the passive activity loss carryover?
Also am I required to depreciate the primary asset (the property itself) for a rental property? I was once given advice by my lawyer that I was not required to take depreciation. Taking depreciation is not a benefit for me since it just adds to my negative cash flows and results in more passive activity losses. And now it seems as long as I keep doing 1031 exchanges and I maintain at least one rental property (which is my plan), I will never be able to recoup those losses.
