Is there Recapture after loss of a rental?

[Vic Scaperotti]

Say you start a STR and use the loophole to write off 100k from W2 salary.

2 yrs later the rental goes underwater and you have to give it up at huge loss.  

What happens with recapture of that loophole money?

[John Underwood]

It not a loophole, it's part of the tax code.

I would ask your CPA this question, people not qualified to answer this could give you wrong info.