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Looking to offset your W-2 income with your real estate investments? In order to do this you must qualify for one of the passive activity loss rules exceptions. Real estate is typically considered a passive activity, meaning losses can only offset passive income. However, taking advantage of depreciation for tax purposes can often lead to losses exceeding rental income and to use these losses to reduce your W-2 income, you need to qualify for at least one of the two PALR exceptions. I've release
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