@jbstav17 wrote:
Its my understanding that you can carry over net operating losses from year to year basically indefinitely until you sell one day and can write them off of your capital gains.
The losses to which you are referring are "passive activity losses", not net operating losses, but you are correct in your understanding that passive losses are suspended in certain instances.
However, prior year passive losses are not only released when there is a sale to an unrelated third party in a taxable transaction, they are also released to offset any passive income in future tax years.
