Can I deduct section1231 loss from Schedule K1 in a partnership that I did not materially participate in from my adjusted gross income?

I am using Turbotax to enter schedule k1s from my real estate partnerships that I did not materially participated in. But turbotax forms place section 1231 losses from partnership under Form 8582: Passive Activity Loss Limitations Part VII - Allocation of Unallowed Losses. Why? Don't my section 1231 losses directly lower my AGI?