If it does, then you might be able to offset your W-2 income two ways:If your MAGI is between 100k to 150kIf not, if you first qualify as an RE professional and materially participate in your rental.

@Tom RountreeDepreciation is calculated regardless of what your MAGI is.Having an LLC won't help make rental losses offset other sources of income.

@Grace Yang what made this an emergency that didn't require your prior approval?

Cha Yang Check with your CPA on something like this.  1031 tax law is extremely technical and if done wrong, can be an expensive lesson.  

If your MAGI is over $100k ($150k if married filing joint), losses generated from your rentals will not offset business income. 

Welcome to BiggerPockets, @Vickie Yang.  

Hi there, my name is Chue Yang and I am new to real estate investing, I want to start real estate wholesaling and would love any advice and help I could get from this community.

Hey @Chue Yang!

In addition, a 3.8% Medicare surtax now applies to the lesser of “net investment income,”(NII) which includes most sales of rental real estate properties, or the amount by which your modified adjusted gross income (MAGI) exceeds a threshold of $250,000 for joint filers (or a MAGI of $200,000 for single filers).

Make sure to have a conversation with you tax professional to see if you will be able to realize the passive tax losses or if they will be limited by IRC Sec 469 / PAL rules if your MAGI is too high.