You are correct. With no other income to offset the loss from the rental activity, no tax benefit would be realized in that tax year.
However, passive losses are carried forward on Form 8582 to future years until 1) there is other non-passive income to trigger the exception, 2) the carryover losses offset Passive Income or 2) you dispose of the rental property.
TurboTax will automatically calculate your passive losses, apply them when possible, and carryover any excess. See Form 8582 Part II to review how the allowance is calculated.
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