Capital Gain on Rental Property question

I'm doing some tax planning for this year - we sold a rental property at a long term gain.  We also have K-1 losses this year, due to depreciation, from a real estate investment.  When I input both into TT it is offsetting the gain with the K-1 loss....but I didn't think you could do that.  Can someone advise what I might be doing wrong to cause that?  or is TT right?