First, I'm not an expert on TT. I know more about tax law than TT.
However, I ran a test through TT Home & Business edition. I entered a "test" Sch K-1 as General Partner or LLC manager. Checked domestic partner; Filled in test amounts in the capital account information.
Checked "Rental Real estate - Box 2" for type of activity for the 1065
Answered yes to materially participate
Check both boxes for: spent more than 750 hours in the RE AND spent more than 50% of my work-related time involved in RE.
When I did that, it gave me full losses.
I then unchecked the box for 50% of time, and losses were then limited to losses of non-passive income up to $25,000 in losses.
So, in my test software, the calculations were correct.
The only thing I can suggest is carefully reviewing your answers to all the questions, in particular, the answers to spent more than 750 hours in the RE AND spent more than 50% of my work-related time involved in RE.
That's about the only thing I can think of at this point
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**