Depreciation recapture question

[Evan Loader]

I have yet to experience depreciation recapture, since none of the syndications I participate in have exited.

My question is this. I have had paper passive losses on all K-1s filed with no passive gains to offset(I’m a W-2 civilian defense contractor so I can’t offset active W-2 income in my situation since I am not a REP) and I have preserved those losses both on my federal return and the state returns I invest in.

I intend to carry those passive losses forward until I exit on a deal and use those losses to offset part of the gain. I know my basis falls due to the depreciation and those carry forward losses should offset that. Assuming I carry losses forward on a deal until exit will I be able to offset the depreciation recapture portion with those suspended losses I carried forward? My concern is if I didn’t get to experience the benefits of the depreciation I should be able to offset it when I sell. I claimed them on my return but since there was no passive gain to offset they carried forward. The key is to carry them forward via suspended loss on your return in order to use them at exit correct?

I appreciate the insight anyone would have on this.