Thank you Tagteam. I see that line but I also see where it says to record your unallowed losses on Form 8582. Very confusing. It appears form 8582 is only required to be filed if one is actually taking a passive activity loss, rather than carrying forward an unallowed losses. It appears TurboTax should still put the unallowed loss on form 8582 but not file it if there is no loss being taken.
