If this was a partnership K-1, then the loss would be reported in box 1 to box 3. If it is in box 1, then it is an ordinary loss and as such you can only deduct it if you materially participate in the venture and you have enough money at risk to absorb the loss, or you have similar passive income elsewhere to match it up against.
If the loss is reported in box 2 or 3, you can only deduct it up to $25,000 if you meet the participation and at risk requirements mentioned above, plus your adjusted gross income is under $75,000 (single) or $150,000 (joint filer.)
Once you enter the K-1 schedule in TurboTax, the program will determine if you can deduct the loss or not, based on your answer to the questions in the program.
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