Missing these dates can result in financial losses and jeopardize the entire deal.

Will the losses from the real estate that you buy be considered active or passive?

@Drago Stanimirovic thank you, and you are right I will probably do cost segregation studies at some point, but so far I have still been able to get to a loss on my taxes using the straight line 27.5 year depreciation schedules, I will probably do the cost segregation studies once I can't show a loss anymore, which will happen at some point as the rents increase and the amortization schedules shift to more principle and less interest.

In 2 years our investment had been fully recovered plus some.  

They suffer extreme losses.

The only difference is that there might be an explainable rationale for holding on to a property, such as a well-founded belief that equity gains are coming (such as owning a house in a rapidly growing area or property where the next commercial boom is headed), whereas with gambling your odds never change regardless of your losses.

The suspended losses can used to offset the capital gains from the sale of the property or to offset deprecation recapture.

Cut your losses, and move on. 

Your family is likely looking at a $1M+ loss if asset owner is transferred now.

@Alex BoulgerWell, this is where the classic tax answer of "it depends" comes into play.This could be a good opportunity for loss harvesting, if you have underperforming assets in your portfolio.