is your adjusted gross income over $150K or $75K if married filing separate? if so, you are subject to the passive activity loss limitation. thus you get no current deduction for the loss. it is carried forward to next year. the same rule applies in future years so you get no tax beneft unless your AGI drops below the limit or you dispose of the property in a taxable transaction (a 1031 exchange does not qualify)
look at form 8582 which will show you the loss and reason none is currently deducted.
