Form 8582 Home and Biz will not allow loss

I am having a problem with form 8582, allowing me to show a loss.   I have a multi family house, which I rent 1/2.

I was married last year and understand that you can not show a loss if married and filing separately,  I have filed married and filing jointly, but am still not allow to show a loss.  Form 8582 shows all the correct information, but it fills out part II as if married filing separately.  ie  line 5 is $150,000.  Software error or a, I missing something

 

Thanks in advance.