I have a rental, and I have a loss on it in 2021.

@Dwayne Clarke going to take an educated guess that what you were cautioned about is buying someone else's problem.Over the last couple of years, many OOS investors bought a bunch of SFR and MFR properties with LITTLE due diligence.Many were sold Class C & D properties that they thought, or expected to perform like, were Class A or B.Once they figured out what the properties really were - via tenant nonperformance and never-ending maintenance issues, they looked to sell them.If you know what you are doing, their loss can be your gain.If you are new and do NOT know what you are doing, then you'll just be the next "sucker" that gets taken.

This is out of an article that should help you get your research started: A taxpayer may not deduct losses sustained in the demolition of buildings and their structural components.

But her name is not on the properties.As I understand, we don't get any advantage in the real estate losses against my W2 income.

Because non-passive losses can offset non-passive income/ active income.

@Marco PadillaIt's easy for us to say all this because we have experienced it; the initial visceral reaction to a large loss is emotional can you give us more color when you are back in country?

In general though, you're able to directly offset your income from the active rental activity with the *losses* you take from the business, but once the business becomes profitable, this would also add to your taxable income. 

Most of the largest cities in the Midwest, includingChicago, Detroit, Indianapolis and Minneapolis, rank in the middle of the pack.Geographic and infrastructure advantages support leasing by small manufacturingand distribution tenants in these locations.However, limited population growth, or in some casespopulation losses, result in less robust leasing among smaller tenants in localconstruction trades.

@David CozziYou may be able to do that.However, you have to consider the drawbacks of your stategy.You are converting a potential scenario where you have passive losses with no active income to passive losses with active income.

Anyway... having the ice cold steely eyed final arbiter has been beneficial in keeping my over enthusiasm from creating financial loss.