Why are capital gains rolling into net income for form 8582 Part I - 1a

After updating my "Property Assets" in Turbotax to indicate an asset acquired many years ago has been sold, the gain appears in form 8582 (Part I -1a) as net income.  (It also appears as capital gains in Sched D and 4797 as it should.).  Why are these long term capital gains appearing as income in 8582?  I thought this was only for passive income - which does not include capital gains.