Check my math? Deducting STR losses against high wave W2 job.

[Gian Jr, III]

Hi BiggerPockets community, I am considering purchasing a STR and being an active participant for the opportunity to deduct the STR losses (notably deprecation) against my W2 job. I have been doing a lot of research here and I *think* I understand how this all works. If you have done this before, would you mind checking my math and seeing if I'm missing any large aspects?

I put together a spreadsheet example for a $1M STR purchase, $20k STR income a year, and $400k/yr W2 job in California. None of the expenses are exact but I am hoping to verify that my big picture idea (line 35) is correct and that I'm not missing any glaring issues. Many thanks in advance!

https://docs.google.com/spread...