Tax consequences - passive loss and sale of multiple properties

[Jay Robertson]

Hello, I became a small-time real estate investor/landlord (more by brute market force than by choice). I have been browsing this forum for many months and have learned so much. However, I cannot find the answer anywhere to one big question I have. Please let me give a description of the problem. I have three properties, 2 condos and one house.

Condo 1: bought in 2006 for $231,000 (now worth $160,000; bought with 20% down payment).

Condo 2: bought in 2013 for $44,000 (now worth $95,000; bought with cash).

House: bought in 2014 for $745,000 (now worth the same; bought with 20% down payment).

Condo 1 was used as a primary residence from 2006 to 2015 and then converted to a rental in August 2015.

Condo 2 has been a rental since being bought.

House has been a rental since being bought but was bought with plans to make it a primary residence in 5 years.

We have income above $150,000 so cannot get benefits of passive loss deductions. For 2014 taxes, Condo 2 and House were treated as one activity. House creates significant paper losses due to interest deduction and depreciation, which offsets all income from Condo 2. For 2015 taxes, I plan to treat Condo 1, Condo 2, and House as one activity.

I am trying to figure out how to reduce tax liability when selling Condo 2. I assume Condo 1 will be sold at a loss or break even. We don't plan to ever sell House but want to be able to take advantage of the significant passive losses House will generate while being used as a rental. 

If we move into House in 5 years, continue to rent out Condo 1 and Condo 2, and then sell both 5 years after that (but continue to keep House as primary residence), can we use the total amount of the suspended passive activity loss generated by House (from 2014 to 2020), by Condo 1 (from 2015 to 2026) and Condo 2 (from 2013 to 2026) to offset gains at the time of sale of Condo 1 and Condo 2? 

The concern I have is that will I have sold off "substantially all" rental activity if I still have House, even though as a primary residence, and will the IRS allow using the passive losses from House to offset gains from Condo 1 and Condo 2 while I still have House. If not, I assume the best option is to treat House separately from Condo 1 and Condo 2. I cannot find anything specific to my situation. Thank you