That is correct. Because your income is to high, none of your passive losses are allowed. Instead, they are carried over to next year (shown on form 8582) where they will be deducted if your income is not to high of course. Overall though, if you have a mortgage on the property you can still expect your carry over losses to continue to accumulate and increase with each passing year. Thats because your passive losses can only be deducted from passive income. You can't "realize" the losses against other ordinary income until the year you sell or otherwise dispose of the property.
