I had 2 rentals, 1 with gain, 1 with passive loss. I occupied the 2nd. Can I use passive loss carryover from home I moved into to offset gain from rental or K1 income.

[phattrye]

I currently have passive losses from a rental property that I ultimately moved into, and would like to know if I can use those to offset current and future gains arising from my remaining rental property and from K1 income.

[MarilynG]

Yes, you will be able to use your passive loss carryover against other passive income reported on your Schedule E.

Your passive loss carryover from Property A will be shown on your Schedule E, and your passive gain from Property B, will be netted for Total Rental Real Estate Income (or Loss) on Line 26. 

Here's more info:

https://ttlc.intuit.com/replies/4026913

[mital1982]

i have a passive loss from rental last two years and are carried over. i also have loss this year.

1. can i use safe harbor to convert passive to real loss of all those years

2. i have a K1 from different activity . can i offset loss from rental property against it.

[ThomasM125]

You can apply passive loss carryovers from previous and the current year to passive income from another activity. So, "yes" to question 2, assuming the other K-1 is from a passive activity.

For question 1, you can only deduct the passive losses when you fully dispose of the activity in a taxable transaction with an unrelated party, or you have income from other passive activities to apply it to. 

For rental properties, however, you can deduct up to $25,000 of losses in the current year against ordinary income, but there is a phase out of this deduction starting at income of $100,000 and is totally phased out at income of $150,000.