That's no surprise. It is rare for long term residential rental real estate to actually show a taxable profit each year. In fact, it's more common for rental expenses to exceed rental income each year. Once your rental expenses get your taxable rental income to zero, that's it. You can't deduct any more of those expenses anywhere on your return. The excess expenses just get carried over to the next year.
So you'll notice with each passing year your carry over expenses will continue to increase. You can't realize those expenses as a deduction until the tax year you actually sell or otherwise dispose of the property. With each passing year you'll see your ever increasing carry over expenses on IRS Form 8582.
