"Do you agree with K-1 in this case? Thanks!"
What I may or may not agree with doesn't come into play here. It's what tax law may or may not require and that's all that matters. This all depends on how whatever you invested in is set up. Then based on that setup, it matters if you are what I would refer to as a "silent partner" (I forgot the legal term) or not.
For example, if you invested the money in a multi-member LLC that business would most likely issue you a 1065 K-1 and as a silent partner any payouts to you would be reported in box 4 because if your investment gives you any percentage of "ownership" in the business, then you are required by law to take what is referred to as a minimum distribution. Other income if passive could be reported in box 5, 6a thru c and even box 7. Heck, depending on the setup it could be in practically any of the boxes 1-10. It just depends on how the business is set up and your contractual relationship with the business..... and that's just for a multi-member LLC. An 1120-S K-1 is totally different as the boxes are not all the same as on the 1065 K-1.
But overall the main thing is, TurboTax will not have any problem dealing with your situation no matter what kind of tax reporting document you may get, and no matter what box or boxes on that document any income and/or losses may be reported in. We can sit here and speculate all day. But only the person that is reponsible for the business taxes can give you any definitive response as to what tax document you may receive and what boxes any income/losses would be reported in.
