Rental Property Deduction Limit

[Zulu Black]

Hello All,

This year, in July I started to enter the realm of real estate investing by renting out my SFH for $4k/month. I also have a full-time engineering job. I understand an individual may deduct up to $25,000 of real estate loss per year as long as their income <$100,000. However, my combined allowable deductible (property tax,depreciation, mortgage interest) already exceeds that amount.

I read this threshold doesn't apply if you're classified as a "real estate professional". Although my full time job is in engineering, I am in the process of starting an LLC with my partner. We're planning to invest into rental properties and I feel that I've exceeded the 750 hours mark.

I want to ask if there's a way to be able to deduct more that the allowable $25,000.

Thanks. I appreciate all comments.