LP In Syndication | losses from Syndication & W2 income

[Gaurav A.]

Context: My spouse is a real estate professional by materially participating in the management of multiple Single family Residential.She spends more than 750hr and keep a methodical record oh the activities. Plus this is more than 50% of her work activity. We file our taxes jointly.  All good there. 

Question: Now I have also started to participate in real estate syndications as an LP. Can we takes losses from syndications (as a LP) and deduct those losses from our W2 income, Based on the fact that my spouse qualifies as a real estate professional?
I have been told that this can be done, but I am not sure how.

Any guidance will be helpful. 

[Brandon Hall]

@Ashish Acharya @Michael Plaks

Ashish correctly points out that LPs are subject to more specific rules, however the courts have found that a limited liability company (LLC) interest is not treated as a limited partnership interest. A taxpayer may establish material participation in an LLC interest via any of the seven tests. See Garnett,132 T.C. 368 (2009), and Thompson,87 Fed. Cl. 728 (Fed. Cl. 2009).

Taxpayer is a REP, materially participated in their own rentals, and can make the grouping election to treat all interest in rental real estate activities as one. There shouldn’t be concern about being an “LP” and there’s no issue with not materially participating in the entity as the grouping election would be made.

Am I missing something?