Choose the response that correctly completes the next sentence: When a taxpayer disposes of their entire interest in a passive activity, the prior$-$year suspended passive activity losses $\_\_\_\_\_$:

Are normally deducted in full on Schedule E $($Form $1040)$ in the year of sale if the buyer is an unrelated party.

Are deducted against ordinary income up to $$3,000$ and carried forward until depleted.

Are permanently disallowed.

Are carried back up to five years on amended returns.

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