With income in excess of $150,000 you can deduct expenses, but you cannot take a loss on the property, as this is classified as a passive loss. So your deductions are limited to your income from the rental. Tax law limits these losses.
However, unused losses do carry forward and can be applied to future years. If you sell the property, you can write-off any unused rental losses that have accumulated while you have owned the property. . So, you do get the losses, but they are deferred.