Short term tax deductions only applies the first year?

[Account Closed]

I heard that short term loophole is a one time benefit that you get the year you start service. The following year would be considered passive, so even if you materially participated, it would still be passive the following year and you cannot offset your W2.

Is this accurate? Maybe I took this out of context. Can someone explain further? 

[Michael Baum]

Hey @Account Closed, it isn't a loophole, it is just the tax law.

I would get with a CPA and get the full rundown for your exact situation. Worth every penny.