Possible reasons a loss reported on a K-1 form would not be deducted on your tax return would be that it is from a passive loss or you do not materially participate in the business. Also, you cannot deduct a loss if you are not "at risk" for the amount of the loss.
To show material participation in the company, will will see a question Did you Actively Participate? You need to answer "Yes" to that question for an ordinary loss to be deductible against ordinary income.
You will also see a question Describe the Partnership. One of the responses will be All of my investment in this activity is at risk. Again, you would need to answer "yes" to that question for your loss to be deductible. You will see an explanation of the at risk rules next to the question in TurboTax.
If the income reported is rental income (box 2 on a form 1065 K-1), it is by default a passive loss, only deductible against other similar passive income, but up to $25,000 of ordinary income in most circumstances.
If your K-1 form is from an S Corporation, you will see similar questions in TurboTax.
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