are you a real estate professional?
if you are not a professional the net losses are passive. if your adjusted gross income is over $150,000 no net passive real estate losses are allowed. notice the word "net". it's not that the expenses aren't allowed and the rental income is taxed rather the net loss is not allowed.
don't know what happened in 2020
look at form 8582 where the allowed and disallowed passive losses are calculated.
