In the Property list, select number assigned to the rental real estate activity you want to dispose.
Click the Depreciation button at the top of the screen.
In the Show Assets For and Asset lists, verify Rental/other passive and the property you want are selected.
In the Section list, select Federal Depreciation.
Verify Rental/Other Passive Activity and the activity number assigned to the rental real estate activity are selected in Form Number and Activity Name or Number (e.g., 3 = 3rd Rental).
In the Section list, select Sale of Asset.
Select the Entire Passive Disposition checkbox. The program releases any suspended passive losses associated with the rental activity.