I'm confused about this. I asked our accountant and since I'm new to rental thought I would do more investigating before asking dumb questions~ at least here I think someone might be able to help explain it to me in plain English.

1st part of my question:
Example: You and your spouse meet all of the requirements and have a $10,000 loss. The $25,000 limit means that you have $15,000 remaining before maxed at the limit. The following year, you incur another $10,000, do you only have $5000 left that you are able to deduct and then the ability to use this deduction when there are losses is gone?

Does it change your ability to depreciate your rental property at all?

2nd: I don't understand exactly what it means to offset rental income AND other types of income. Does this mean for example from a Schedule C- business or income from a regular job that we pay taxes on? Am I reading this totally wrong?

Like I said, I'm confused and would like to learn more about how this works.

Example: Rental in service Oct. 2014. Loss of $4500 2014 for expenses & major renovations. No rental income for this year, ready but not able to find tenants during winter months.

Property is rented starting in April 2015. Next year projected rental income $7000.
Depreciation/expenses $6000 next year plus expenses incurred before rental in April 2015.

Don't want to miss out on this if it is something we should be taking advantage of. (Worse yet, something we should have taken advantage of this year)
Any help GREATLY appreciated!