Deduct Loss created by Depreciation Expenses

[Vince Liu]

Hi Tax Experts,

I learned in a article that you can actually use the loss created by your real estate investments (of course it's not realized loss) to offset your W-2 wages and other income.  Is that true? Is there certain limitations?

i.e. if you have net income of $10,000 for the year and your desperation based on a 27.5 year of ($15,000) then you technically have a ($5,000) loss

Thanks in advance!