@krisdestruction wrote:
Yes I understand material participation, 750 hours, 50% of business/trade time, etc. for the IRS definition. But still want to know if I can then start deducting my depreciation towards my "regular" (ie. w2, 1099) income
Yes, you can deduct any net loss on your rental(s) from your "regular" income provided you materially participate as a real estate professional.
The minimum hours and percentage requirements solely qualify you to meet the definition of real estate professional. Note that you still need to materially participate in your rental activities (as a real estate professional) before the net profit (income) will be treated as nonpassive.
