Is there a dollar limit on how much we can use real estate depreciation to offset W2

[John Zhang]

My wife is REPS status. I am a W2 employee. I used to believe that the limit is $500,000. But is it still true? Thanks in advance!

[Aaron Zimmerman]

Quote from @John Zhang:

My wife is REPS status. I am a W2 employee. I used to believe that the limit is $500,000. But is it still true? Thanks in advance!

 Yes - there are limits but you likely won't hit them. To piggyback off what Ashish said, the limits are. For 2024, the threshold amount is $305,000 ($610,000 for taxpayers filing a joint return). These amounts are indexed for inflation. This is per the 2024 instructions of form 461.