If you are an active member in the LLC for rental property management, taking care of repairs, property management, etc. then it is not passive income/loss. You can also have an LLC rent a portion of your home for the LLCs business purpose. That portion of the home's expenses, (depreciation, taxes, insurance, HOA dues, maintenance, repairs, etc.) offset the rental income and become profit, (or loss) on your 1040 schedule E up to the AGI limitation.
Unless you have multiple properties to place into the LLC for the purposes of separating the profit/loss of the business from your own income it would probably not make sense. But if you do it is a great way to make sure the LLC captures all of the expenses associated with all the properties. Everything from lawn care to snow removal, to insurance and taxes. What ever that number is plus the revenue is add / subtracted from you income on 1040. Just make sure you materially participate as an active member in the LLC.
