Is there a loophole or workaround for PAL without being a REP?

[Joe Liu]

Is there a way around the PAL as an investor who maybe just purchased their first investment property, both husband and wife work a w2 job, make $200k+ so the PAL doesn't give them any benefit, but the plan is to keep buying more properties and grow the porfolio? Seems like they won't really get any tax benefits in the current example but could they not create an LLC of some sort to try and create a work around 'loss' against their w2 income without being REP? Thanks!

[Denver McClure]

Hey Joe, if you want to invest and get a potentially large tax deduction immediately, the best bet if you are not a REP and do not opt to invest in a STR is oil and gas investing. @Jeff Nash uses this strategy frequently and would be a good person to chat with.