When your income is over a certain threshold ($160K I think) then your rental losses are limited. You will still claim all rental expenses on your tax return each and every year. However, if the AGI is to high it may not be allowed. But you still claim it. (If you don't claim the expense in the year it's incurred,, then you may never be able to deduct it later).
Your unallowed losses will be carried over each year until such time your AGI allows you to deduct it, or when you sell or otherwise dispose of the property in a future year.
