Tax questions on Syndication exit

[Peter Lampione]

Thanks for all the great info on this forum.  I found a few posts similar to what I'm looking for but couldn't find the exact answer so creating this post, apologies if it is fully answered somewhere.

Trying to understand the specific treatment of suspended losses against syndication capital gains and depreciation recapture.  As an example:

- Invest in Syndication 1 in Year 1 for $100,000, realize $60,000 depreciation

- Invest in Syndication 2 in Year 2 for $100,000, realize $50,000 depreciation

There are typically distributions that would use up some of the depreciation losses, but ignoring them here for simplicity (I have many deals that have created a lot of losses).

- Syndication 1 exits in Year 3 for $150,000.  There is a gain of $50,000 and depreciation recapture of $60,000.

From year 1 and 2 there is a total of $110,000 is suspended losses.  Would that $110, be able to offset the $50,000 gain (taxed at cap gain rates), and the $60,000 taxed at 25% recapture rate?

I have read many places where people mention the losses need to be generated in the same year as the sale in order to offset the sell, but in other cases they imply that prior year losses can offset both gains and recapture?

Thanks,

Peter