My wife can claim real estate professional status for 2019, can we deduct all the previous passive losses carry over?

[zjholdings]

I have passive losses that are carry over for about 4 years. My wife qualifies for real estate professional status this year. Will we be able to deduct all the passive losses that were carried over from past year to this tax return? 

[DawnC]

Generally, passive activity losses are limited to the amount of passive activity income. Losses carried over from last year can be used to offset passive activity income only.  As a real estate pro, her gains or losses are not considered as passive income.  You may deduct in full any previously disallowed passive activity loss in the year you dispose of your entire interest in the activity.

[zjholdings]

I see. So what it means is that, unless we sell the properties, we won't be able to deduct prior passive losses as we will start using the real estate professional status to earn active income and active losses. Is that correct?

[KurtL1]

If the rental property has a profit in a year, the passive loss carryover from the prior years can be used to reduce this passive income. You do not need to sell the property to use the passive losses.