Rental property deduction Question/issue

[Newb4243]

I have two rental properties. when I finish putting them into turbo tax the rental for tax on one is -3k the other is +7k for a total of 4k. When I move on to the deduction and credit section from the wages and income I have a screen that reports that my rental profit is 7k and my deductible losses are zero. They are both filled out the same. Both are passive income. Why is it not  deducting my loss of 3k from my +7k. I have tried to fix it several times but don't know what I am doing wrong.  

[RobertB4444]

Your rental loss allowed is limited by your income.  If you make too much money then you aren't allowed to deduct it.

If that isn't the case in your situation then you need to make sure that you have told the system that you actively participate in the rental of these two homes.  Active participation doesn't mean that you are the one on site doing all of the work.  It can also mean the supervision and review of the management company you've hired and all of that.  

@Newb4243 

[Carl]

The most common reason I see for your issues is that on one or more properties you did not indicate that you actively participate. (Maybe you pay others to manage the property for you, and therefore you don't actively participate?)

Don't know if this is your first time dealing with rental property, or first time dealing with it on TurboTax. But if so, the below information will help clarify a few things that the program does not. Absolute perfection in that first year is not an option. It's a must. Even the tiniest of mistakes can and will grow exponentially over time. Then when you catch it years down the road, usually in the year you sell it, the cost of fixing it will be expensive. So if you have more questions, please ask.

Rental Property Dates & Numbers That Matter.

Date of Conversion - If this was your primary residence or 2^nd home before, then this date is the day AFTER you moved out, or the date you decided to lease the property – whichever is later.
In Service Date - This is the date a renter "could" have moved in. Usually, this date is the day you put the FOR RENT sign in the front yard.
Number of days Rented - the day count for this starts from the first day a renter was contracted to move in, and/or "could" have moved in. That would be your "in service" date or after if you were asked for that. Vacant periods between renters do not count for actual days rented. Please see IRS Publication927 page 17 at https://www.irs.gov/pub/irs-pdf/p527.pdf#en_US_2020_publink1000219175 Read the “Example” in the third column.
Days of Personal Use - This number will be a big fat ZERO. Read the screen. It's asking for the number of days *YOU* lived in the property AFTER you converted it to a rental. I seriously doubt (though it is possible) that you lived in the house (or space, if renting a part of your home) as your primary residence, 2nd home, or any other personal use reasons after you converted it to a rental.
Business Use Percentage. 100%. I'll put that in words so there's no doubt I didn't make a typo here. One Hundred Percent. After you converted this property or space to rental use, it was one hundred percent business use. What you used it for prior to the date of conversion doesn't count.