I apologize, you are correct, you are correct. However, it still should not on be entered on 8825, which is specifically for real estate (and the rental income should show up on Box 3 of the K-1, not Box 2).
Based on what I've seen, TurboTax does NOT handle these type of passive situations well (at least on the personal return), and it may require overriding. You may consider a tax professional.
