Hello, any advice much appreciated,

My client has sold a rental property (passive) for a capital gain of $140k. The property has passive losses carried forward from prior years of $30k. He also has a LP interest in a hotel partnership. This generated $60k of carry forward losses last year in a K1 (its first year - large depreciation charges I believe).

From 8582 pulls the $30K + the $60k of passive losses carried forward as a deduction of $90k on the 1040, substantially reducing the cap gain of $140k.

Is this correct, or can the $60k only be used as an offset when the hotel LLC is sold/exited. Both are real estate - but I am getting mixed answers in my research.

Thanks for the help

Nolan