How to max out write offs for out-of-state investment property

[Pat McQuillan]

Hi Everyone,

I'm based in CA and will be buying an investment property in MA/NH/RI in the next 6 months. I will not be using an LLC and so will pay landlord insurance and be able to make deductions directly from my personal income. I understand federally I can deduct payments on mortgage interest, property management fees to my onsite property manager, maintenance, etc. I know certain things like insurance, etc. can't be deducted.

Are there are big missteps I should make sure I'm not making in my assumptions/landmines I shouldn't step on to make sure I can deduct these expenses and receive the right rebates in my tax returns at the end of the year?

Cheers,
Pat

[Basit Siddiqi]

The W-2 income does not limit your deductions.
You are entitled to write-off as much as you want.

The next question is, is the overall loss considered passive?
If its passive, can I use the loss to offset my W-2 income.