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Have loses on my K1 but TurboTax shows 0 for Passive Income Loss
I have a K-1 from a Restaurant I invested and I do not participate in management of the business.
It reported loses of $7K this year (and the prior year -$4K).
All of my investment in this activity is at risk.
After entering the K-1 information into TurboTax, the final Schedule E (form 1040) has '0' for the Passive Loss and Line 41 Total Income or (loss) is 0.
Why does it show as $0 instead of -$7K?
When i look at Form 8528 (Passive Activity Loss Limitations), I do see the -$7K and -$4K from the prior years in Worksheet 3.
Am I not understanding this correctly? Is Turbo Tax not entering the K-1 correctly or did I enter the information incorrectly?
Can I only use this passive income loss to offset passive income? Or do I need to wait until I have a complete loss?
Thank in advance!