"Active" in terms of residential real estate, and in this instance, refers to "active participation" (as opposed to "active income/profit/loss").
See https://www.irs.gov/publications/p527#en_US_2020_publink1000219124
Income from rental real estate is generally passive income and any losses are generally passive losses (and passive losses can typically only be used to offset passive income - with the exception of a special allowance (see the link above)).
What you are most likely seeing is your passive losses being disallowed as a result of the passive activity loss limitation. Your passive losses will, however, be carried forward to the subsequent tax year.
