Carryover Losses from Multifamily Syndications

[Rowena A.]

Am I wrong???

In 2021, I invested in multifamily syndications while maintaining non-real estate professional status. Subsequently, in 2022, I transitioned to full-time real estate activities and am now eligible to claim real estate professional status.

My specific question pertains to the carryover depreciation from my syndication investments in 2021. Can these passive losses be utilized against the passive distributions (income) I received in 2022 from the syndication investments made in 2021?

My understanding is that passive losses in 2021 can be carried forward and released to offset passive income in 2022. However, I would greatly appreciate any tax experts in confirming and providing any additional insights into this matter.

Appreciate if any tax experts could help with my question. TIA!