Did you materially participate in the rental activity in 2022? Also, if your income is to high, once your rental expenses gets your rental deductions to zero, that's it. You are not allowed the additional $25K of passive losses against other "ordinary" income. It just gets carried over again.
There's a fairly descent writeup on this at https://www.thebalancemoney.com/passive-activity-loss-rules-5197833
The part that sticks out to me is:
You might also be eligible for a special $25,000 allowance if your losses were the result of a rental real estate activity. The IRS indicates you can effectively subtract up to $25,000 of any associated loss from your active income if you actively participated in this type of activity. You actively participate if your interest in the endeavor was at least 10% by value. This is different from the rules for material participation in other types of business enterprises.
The special allowance drops to $12,500, however, if you’re married but lived separately from your spouse for the entire year and filed a separate tax return. And there’s no special allowance if you lived with your spouse at any time during the tax year but filed a separate return. This allowance also phases out if your modified adjusted gross income (MAGI) is more than $100,000.
