I screwed up.  The amounts on 8582 Pt I, ln 1d and ln 4 are not losses, they are a positive number.  The math on 8582 looks like this.

 

1a. $157,037(gain after $250K home exclusion)

1b. -$10,031, Activities with net loss

1c. -$51,793, Prior years unallowed losses

1d.  $95,213

 

So down on 8582 Sec 4, ln 4, it says “If this line is 0, or more, stop here and include this form with your return;  all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c.  Report losses on the forms and schedules normally used.”  What forms and schedules is line 1c reported on.  I would have expected to see the losses -$10,031 & $51,793 to be combined and offset ordinary income.  But I see $157,037 as a capital gain on Schedule D.  Can't suspended losses be be used to offset ordinary income?  Am I missing something here?

0 Cheers