It depends. The special rental loss allowance for Residential Real Estate with active participation is not available for taxpayers whose filing status is Married, Filing Separately if you lived with your spouse at any point during the year. See this from the IRS.
For Married, Filing Separate individuals who lived apart all year, If your modified adjusted gross income is more than $50,000 but less than $75,000 , your special allowance is limited to 50% of the difference between $75,000 and your modified adjusted gross income. In your case, that would be $12,500.
I'm not sure why you are seeing an allowable loss of $1,200, but if you provide more information I would be happy to help. It's possible that your Modified Adjusted Gross Income is higher than the $60,000.
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