K-1 Box 13W

I have a K-1 from a partnership with an amount in Box 13W.  The K-1 came with instructions to put this amount on Schedule E as a non-passive loss.

 

  1. Is this correct? I do not “materially participate”, so can I still have a non-passive loss?
  2. Do I need to count this loss against my QBI on Form 8995?