Income from leveraged real estate or active business income.

@Victor Yang To use the rental losses to offset any active income (W2), you'd have meet Real Estate Professional status (which would be difficult to do with a W2 job because you'd have to work more on real estate than any other job to qualify) OR have an AGI of $150K or less.

but careful planning and documentation are essential""...making sure that your wife understands what she needs to do to document her hours and activities."

In my opinion it would be cleaner to split partnership based on monetary contribution and then remunerate each active party for their work if the active work is more on one partner than the other.

Even with active investments, diversification is better.  

That is our best chance at recovery.

Depending on the situation, a taxpayer could offset some of the passive losses with active income.

For C to B-Larger developments announced nearby-Increased activity in new construction-Building of commercial retail in or near the neighborhood. 

Right now, I’m actively learning and planning to start my first projects this year.

As a co-host for short term rentals, you may not need a license as long as you're not crossing over into activities that could be considered brokerage activities like handling any contracts, collecting rents, doing any accounting, approving tenants, etc.