Transferring passive losses

[Jay Johnson]

I had several rental properties that had accumulated passive losses. I started a LLC with my wife (2010) but those previous losses were not carried over at the start of the LLC. My accountant at the time said they can just stay on the house until they are sold. My new accountant said the losses should have been taken at the time of the transfer and since it didn't happen, the losses just go away. I need to know who is right and if you have a reference I could read, that would be even better. Thanks in advance.