Support CenterForm 8582: Complete disposition of installment sale not fully taxed.
According tothe instructions for Form 8582:
Disposition of an Entire Interest
If you disposed of your entire interest in a passive activity or a former passive activity to an unrelated person in a fully taxable transaction during the tax year, your losses allocable to the activity for the year are not limited by the PAL rules.
A fully taxable transaction is a transaction in which you recognize all realized gain or loss.
If you are using the installment method to report this kind of disposition, figure the loss for the current year that is not limited by the PAL rules by multiplying your overall loss (which does not include losses allowed in prior years) by the following fraction:
Gain recognized in the current year/Unrecognized gain as of the beginning of the current year
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