When you say investment property do you mean property held for investment?
Do you mean residential rental?
Do you mean commerical rental?
was this a depreciable asset?
Thanks for the additional information.
From what youy have said in your question, you will be able to take all the passive losses this year, and you will be able to carry forward any excess losses in the followon year.
the maximum passive loss is 25,000 for married filling joint returns, and 12,500 for filing seperate returns.
I am on the way out the door to a business meeting in Newark, NJ.
I can provide the references to you when I return, if that is ok.
Thanks for your patience.
This is the IRS link to their description of the passive loss rules.
It also has the publication references at the end of the page.
let me know if you need more.