However, if you read through the Schedule E instructions it says nothing of the sort. You're supposed to add all the profits and losses together to get a total profit or loss. There's nothing about disallowing losses. In another post somebody commented that TurboTax's result contradicts the state's own online software for Schedule E. I am suspecting this is a significant screw-up by Intuit, unless somebody can point to specifics in the tax code saying otherwise.
