You are totally correct. Turbotax misses this major deduction, and has since at least 2017.
See this post in Intuit's "Professional" tax software Lacerte, which also doesn't automatically reduce the Section 179 deduction from Schedule SE Line2. You have to manually go in there and change it:
https://proconnect.intuit.com/support/en-us/help-article/partnership/schedule-k-line-14a-self-employ...
I was able to enter it as a "loss" on line 7 by going to Forms > Open Form > Schedule SE Adjustments Worksheet > Lin 7 "Less other SE exempt nonfarm profit or (loss)"
