@DJRogers Be sure you are on the schedule E worksheet. Under heading "Check all that apply" is a box H, Complete taxable disposition. you must check that box. That would release the losses, but see what sjrcpa has to say. Also, When a taxpayer transfers an interest in a passive activity by gift, suspended losses increase the basis of the interest. The increase is deemed to take place immediately before the gift (Sec. 469(j)(6)(A)).