Sch E loss not transferring to 1040

[Cookie2021]

I have a client that manages his own rental property (active and material participation).  First year renting. The rental has a $10K loss but it is not transferring to form 1040. Deductible real estate loss shows "0' in Sch E.  Is there an income limit?  MFJ ADJ Gross is $392K. I'm not understanding why my client cannot report this loss.  Your feedback is appreciated.

[Skylane]

Look at passive activity loss limitations. They can’t take the deduction but there will be a NOL carryover 

[Terry53029]

Rental real-estate is passive income. If your client is active there is an exception that allows him to deduct from other income up to $25000, but that phases out when AGI  is $100,000 - 125,000. above $125,000 only deduct loss from other passive income.

[Just-Lisa-Now-]

"MFJ ADJ Gross is $392K."

Answers your question.