How to factor in the depreciation and losses into your ROI

[Krista Roodzant]

Maybe this has been posted before, but I'm not finding it. After speaking with our accountant, it seems like we need to be accumulating a portfolio to help offset the W-2 earnings. How do you calculate the depreciation received and the passive losses into your ROI calculations? It seems that those issues should play a role in what kinds of returns I should be looking for. Hope this question makes sense!