1.The loss was greater than the income so you do not pay tax on the income.
2. Since depreciation is more than income, you will not lose it, you will either claim a loss in full, up to $25,000 or have it all carried over depending on your profession and income.
3. The $12,000 sounds like items that should have been added to the basis of your house for depreciating. I would suggest you change that part of your return.
4. You purchased property property and say the land value was about $100,000 with the house being $500,000. Therefore, the house value plus those $12,000 in expenses above are the basis for the house value. The land value is not depreciated and you will not use that again in future returns.
Be sure to keep all of your tax returns from the time of purchase until 3 years after you sell to track the depreciation taken, the unallowed passive losses and track other assets you purchase for the home. For more on purchase and renting, see Pub 527
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