In general
If an activity is a former passive activity for any taxable year—
(A)#
any unused deduction allocable to such activity under subsection (b) shall be offset against the income from such activity for the taxable year,
(B)#
any unused credit allocable to such activity under subsection (b) shall be offset against the regular tax liability (computed after the application of paragraph (1)) allocable to such activity for the taxable year, and
(C)#
any such deduction or credit remaining after the application of subparagraphs (A) and (B) shall continue to be treated as arising from a passive activity.