The loss may not be deductible for two reasons. It may be a passive loss and you don't have passive income to apply it to. Also, you may not have enough "at risk" in the venture for the loss to be deductible.
If you did not materially participate in the venture, it will be treated as a passive activity, so the loss will only be allowed against passive income, such as other K-1 income. You will see a question to that affect when you enter your K-1 form.
If you are not "at risk" for your investment in the business, you cannot deduct a loss in the current year. You are at risk to the extent of cash and property you have contributed to the activity, plus income you have reported on your tax return over the years, less losses you have deducted and distributions you have taken. You will see a question asking if you are at risk when you enter your k-1 schedule, on the screen that says Describe the Partnership.
So whether you can deduct a loss reported on the K-1 schedule depends on how you answered the questions regarding material participation and your at risk status in TurboTax.
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