Real Estate Loss to offset W2 wages for Tax purpose

[Wai Hong Wong]

Could we use real estate loss to offset W2 wages income tax? If yes, does the property need to under personal name? Or it works even if it is under a legal entity? Thanks

[Natalie Kolodij]

If your AGI is under $100k there is a small taxpayer exclusion where you can potentially utilize up to $25k of passive losses against ordinary income (W2) 

It starts to phase out at $100k, goes way completely at $150k. 

It can be from either a self owned, or rental in an entity.