., you sell your investment), you may be able to use any remaining suspended passive losses to offset other forms of income, including non-passive income like W-2 income.It's important to note that tax laws and regulations can be complex, and the treatment of passive losses can vary based on individual circumstances and changes in tax laws.

There isn’t any special treatment for this. 

$350k down/$1.1mm profit before taxes; $350k/$$1.7mm; $1mm/$1.2mm; $250k/$1.1mm.  2-year turnarounds, really 1 year, but an extra year to get Captial Gains tax treatment if you sale.  

It's crucial to align this decision with the nature of your income sources and their respective tax treatments.

Additionally, there could be tax consequences for you, possibly losing your long term capital gains tax treatment. 

It's crucial to align this decision with the nature of your income sources and their respective tax treatments.

Although the legislative history is different, it's helpful in this situation to examine that case law body.I believe the courts today would agree with and implement a functional equivalence test that examines state law, the operating/partnership agreement, and defacto treatment and actions of the member/partner. 

Because it was a rental BEFORE it wa your primary you don’t get 100% tax free treatment.

Partnerships and corporations cannot be shareholders.To elect for S-Corp treatment, file Form 2553.

Here's how the treatment of capital losses typically works:Netting Capital Gains and Losses in a Tax Year: In a given tax year, you first net your capital gains and losses.