I have a test copy of TurboTax and have created a test return with a K-1 from an LLC and a rental real estate loss with total income below the threshold for the $25,000 special allowance. That allowance appears on Line 5 of Schedule 1 in my test return.
If you are seeing a different result, it could be that the loss appears in a different line on your K-1.
On which line on your K-1 does your loss appear?
