@Canonical TT is working fine. The tax rules don't let you apply the rental loss against the Ord Income. That's why TT requires you to put them in separately. So rather than being able to net the 20 against the 100 today, you pay tax on the 100 today, but the $20 will be suspended and used in the future when you sell. Similarly, if you look at the codes you're citing, 18C is "Nondeductible expenses" -- they're not deductible on your taxes, though they affect net income -- and 13A is a charitable deduction that will be applied to your return on Sched A if you're eligible to use it.
Overall, the net income formula you mentioned in your post is fine for figuring out how all the entries on your K-1 affect your basis, but the tax code may delay when some are recognized, and it may require them to show up on a variety of different forms.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
