If I have 3 rentals on Schedule E and sell one for a capital gain that exceeds the suspended losses on all three, can I use the suspended losses of all three?

[tomfattor]

This question relates to the phrase "complete disposition of an activity".Three rental properties are listed on Schedule E and reported separately.  Property A has a suspended loss (SP) of $20K, Property B's is $10K and Property C's is $10K.  Property A is sold, resulting in a $200K gain.  Can SPs for all 3 properties be used ($60K), or only the $20K, or none?

[Just-Lisa-Now-]

What happens when you check box H near the top of the Sch E worksheet of the one that sold?

[taxiowa · Accepted solution]

All 3 suspended passive losses would be released if you sold Property A for a passive gain.  In this case the gain releases the losses not the fact the property was sold.  But you should check box H anyway.