Basics of Tax Deductions

[Kyler J Sloan]

This will be the first year that I get any tax benefits for the work I have done on my first rental, and I wanted to understand the very basics/fundamentals to determine how much I might get back. 

In my profit/loss statement, are the costs which exceed profits deducted from my W-2 Income? 

If so, I should get virtually all of my taxes back this year. 

Note: renovations started in 2020, but could not be reflected last year, because I had not begun renting the place. 

Thanks in advance for your feedback.