What happens to any unused accumulated passive loss carryovers after a rental is converted to a personal residence? The IRS has specific rules that taxpayers 

Interestingly enough, passive loss carryovers associated with a home that is converted to a personal residence remain with the home. The homeowner can continue to use the carryovers to offset any passive gains they may have until the home is sold; at which time any remaining passive loss carryover becomes deductible against the gain from selling the home.

In another situation, a rental destroyed in the Paradise, CA wildfire, left the owner with only vacant land. Here, again, the passive loss carryovers remain with the property and as with a rental converted to a personal residence, the taxpayer can continue to use the passive carryover to offset passive gains and any remaining carryover can be used against the gain from selling the land.

Additionally, in a taxpayer-friendly result in Chief Counsel Advice (CCA 201428008), IRS has determined that suspended passive activity losses from the passive rental of a home which was formerly used as the taxpayer's principal residence, did not offset gain excluded under Code Sec. 121 on the property's sale. This leaves suspended losses available to offset taxable passive income in the future. If IRS had reached a contrary result, the suspended losses would be wasted offsetting gain that wasn't taxable because it had already been excluded under the home sale exclusion.