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@nolanm wrote:

My client has sold a rental property (passive) for a capital gain of $140k.

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

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Yes, it is correct. 

The $30k is released because it was sold in a fully taxable transaction.

The $60k passive loss carryover can only be used against passive income.  The rental sold for gain of $140k, so there is now $140k of passive income.