Bonus Depreciation towards W2 Income

[Gerald E.]

Newbie question: I've read numerous threads on the depreciation benefits of RE investing but need to ask the following for clarity. I earn over $150K in W2 income. My RE business partner and I have an LLC and are considering an investment as an LP in a syndicated MF deal that has a bonus depreciation opportunity. The GP will issue a K-1 for the depreciation and has conducted the cost aggregation analysis to properly account. As an example if an approximate $75K investment = $33K in bonus depreciation, then my question is can I use this against my W2 income (full time job, non real estate related)? Is the $150K income threshold rule of losing the depreciation offset based on that income coming from real estate?

If not, can I show it as a loss with our LLC and pass through as a K-1 to my personal tax return? Based on what I have read I do not see how I would classify as a "real estate professional" any time soon so open to ideas. My understanding is that bonus depreciation can only offset other "passive income" which after the investment would be the returns on the RE investment. Any insight is appreciated.

[Jaysen Medhurst]

@Jessica Singh, below $100k of W2 income you can deduct up to $25k of passive losses. This phases out from $100k to $150k when a taxpayer "phases out" of being able to claim passive losses against earned income. So, yes a person with "lower" W2 income can use passive losses to offset earned income. Not to be pedantic, but one doesn't "lower their W2 income,"  they lower their Adjusted Gross Income (AGI).