please review this link which explains how the various line items of the K-1 map to Form 1040 (look at page 2). or its various schedules. You'll find that Turbo Tax using this same mapping. Note that Line 19 does not map to Form 1040 so that is not being taxed.
https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf
does this help?
