If the carryover losses were reported in TurboTax from prior years, the software will retain the loss to offset any gain from sale of the passive activity automatically.
Any unused passive losses are carried over and may be used to offset future passive income. However, losses remaining when you sell the asset may be used in full. This should offset any gains and depreciation recapture. There are helpful steps reported in this thread. Be careful as you navigate the screens to report the sale of the rental property.
Sale of rental property with carryover losses
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