Ways to offset my W2 tax with my passive income

[Melissa Aguila]

Hello All,

I own 3 short term rentals that I self manage and I Also own another business where I earn my w2 income working full time.

My question is from my understanding, I cannot use my passive income expenses to offset my W2 income. They only way to do that is if i can prove that I spent 750 hours a year working on the str.

1) Is that the correct tax law?

2) I was thinking if I opened up a property management company, and put 3 rentals in that, would that be enough to prove the 750 hrs./year and would that be a good idea?

3) Do you have any other suggestion on how I can go about this.

Thank you for your time. I'm still quite new to realeastate investing and I'm still learning alot.