Can I use SRT loss to reduce my W-2 income tax?

I bought the STR property in January 2024, which is in a different state than my residence state, and I have a property management company managing my rental property.

In 2024, I have STR loss, can I use that SRT loss to reduce my W-2 federal income tax?

Thanks.

541

Expert Alumni

Apr 2, 2025 9:49:27 AM

You would only be able to use the Short Term Rental loss if you are not restricted by the passive activity or the material participation rules.

See IRS Form 8582: Calculating Passive Activity Losses.

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Can I use SRT loss to reduce my W-2 income tax?