K1 challenges on syndication

[Roy Mitle]

I invested 50K in a syndicate. They used cost seggregation and put 50K as losses in year 1.  This showed up in box2 of K1. My CPA put that as loss in my tax return and carried it over.

Next year they sold the property for a gain of 32K. They put that 32K in box 10. I also see 5K as rental income loss in box 2 of the K1.

My CPA says that 32K is section 1231 gain and so goes into capital gains

However, I feel the box 10 gain should go against my loss of 50K +5K from box2. So I should not be paying any extra taxes. The syndicate agrees with my position. 

In a nutshell, can I offset my gain in box10 with loss from box2 and other passive activity losses (eg. I have a rental property that has passive carryover loss ~125K from years of depreciation)