Client has 4 rental properties. His income is $300,000 and has $80,000 in passive losses to date for all of the properties. Clients sells one of the properties and has a $500,000 capital gain. The software is allowing all $80,000 in suspended passive losses to be used to offset this gain. Is this correct or can I only take the passive losses related to the sold property? Do the return manually, it looks like I can take the suspended passive losses for all of the properties, but I can't find any documentation supporting this.

Thanks,

RIck