If there is an overall loss from a disposition of a passive activity, which of the following statements is true? The gains and losses are treated as passive activity gains and should be entered on the forms and schedules normally used. All of the losses, including the prior-year unallowed losses, are treated as nonpassive losses and are fully deductible. All of the losses are treated as passive losses and are carried forward until there is passive income. All of the current-year losses are treated as nonpassive losses, and the prior-year losses are carried forward until there is passive income.