You must work at least 750 hours per year in a qualified RE business.So most people who have high-earning W-2 jobs outside of real estate won't qualify.But the unique thing about RE pro status is that even if you don’t qualify but your spouse does, you can both file jointly and claim the losses from your RE investments to offset your other active income together.It's an incredibly powerful benefit if you do meet the criteria.

However, if you qualify for Real Estate Professional Status (REPS) or do STR, you may offset W2 income with rental losses.

I equated a car owner to what you insist is invariably an "elderly individual" or a "widow" (as far as I know car owners come in different ages, genders, marital statuses, mental capacities and etc.).

If you can claim real estate professional status, you can offset the losses from the real estate against the income from the retirement distribution.You may still be subject to the 10% penalty.The good thing about a condo is that you pay potentially be eligible to depreciate more of the property compared to other types of residential properties.Best of luck!

Assuming you spend more than 750 hours managing your properties, you would have Real estate prof. status.   

The federal government could use it's special zoning-exempt status to build the housing we need quickly within existing cities. 

However, landlords are investing heavily in upgrading office spaces to meet modern tenant demands, such as flexible work setups and health-conscious designs.

An idea we have is, I am burnt out from W2 life, and wife makes great money (+$300k) , and I could take the year to repair/renovate, manage, rent, repeat the units in the MF qualifying for REPS status (50%, 750hrs, material participation, etc). 

What Can the US government do, But keep spending to prop up the economy and to keep our military strong and our number one status in the global financial system.

It's essential that any such allocations are supported by actual economic arrangements, not just for tax purposes.As for compensation, it’s theoretically possible to negotiate a different economic arrangement within a syndication if another investor finds the depreciation valuable and you don't need it due to the tax-exempt status of your Roth IRA.