But the reality is that unless you're a real estate professional or your property is a short term rental you won't benefit much each year. 

Thimble does not insure short term rentals.  

Another student rental that has a mortage of 900k me and my wife live here on a private floor. thrid property is also another rental ( duplex w a mortage of 390k ) was fully rented but tenant upstairs has moved out a year ago so I decided to renovated to do short term rental added in 2 ensuite rooms.

TECHNICALLY, this falls within the long-term laws because there are only 2 categories - long-term or short-term.

I have two long term rental units now (6 years) and just exited a short term rental last year due to a good off market offer.  

as if it's more of a risk in midterms than in short terms.

Additionally, you could explore options like a short sale or deed in lieu of foreclosure.

We are looking at the compound asset acquisition and also using the short term rental loophole for our future properties and likely moving my wife into the real estate professional position while I remain at my W2 position.To sum it up, I would like to know what higher income W2 earners are doing in order to help offset their W2 taxes or if there is a way? 

It gives you a non-passive short-term rental.

My two cents but the ship has sailed for short term rentals in this market.