GM all - looking for help please,

TP sold a rental property in Feb 2020 for a loss of $40k. Only passive income was rental income from this property of $2,400.

NOI for the 2 months the property leased in 2020 was a loss of $200.

Entered the sale in Asset entry sheet + costs of sale. The $40k loss flows through to Schedule E.

In form 4797 Part 1 the purchase, depreciation and sales price pull through, gain/loss is zero. The $40k loss flows through to E - disposition report as Loss suspended for the year.

Questions:

1. Why is the $200 of NOI loss not flowing through to the 1040?  Is this due to the TP not having other passive income in 2020 to offset?

2. If the $40k is a1231 loss? If so why is it not offsetting income of TP?

2. How do I think about the $40k suspended loss. Is this available in future years to set off against future passive income? Or is the $40k available for offset at $3k p.a. as a capital loss in future years.

Any help appreciated - first time I am dealing with rental real-estate disposal.

Nolan