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The pass-through K1 losses that were previously locked due to the passive activity loss (PAL) rules do get unlocked in the year the syndication is dissolved, and there is a K1 marked "final."

You would need to have a cost segragation study done to "unlock" the depreciation available on the property (usually 15-30% of the purchase price is a good range to expect).

The only thing I would suggest is look at the smith maneuver with the HELOC, it could unlock some of that equity and make the interest exp deductible against the rental income.Good luck!

It may still be useful, depending on your situation.If it is locked, then qualifying for material participation in 2025 will not unlock this loss.

With careful planning, due diligence, and a willingness to think outside the box, investors can unlock the full potential of Charlotte's real estate market and achieve financial success.Which of these strategies would you be open to try? 

Any fewer and it is an investment and not a second home.The IRS rules for being an investment property (and unlocking most of the tax advantages) are that the owner cannot stay in the home for more than 14 days.

I know you said your goal was to unlock the trapped equity, but you don’t necessarily have to sell the property to do that.

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These losses are unlocked when you sell