How to exclude specific passive loss activity at the state level (8582-K)

[j-ong]

Hello TurboTax Community,

Seeking your guidance on how to exclude specific passive loss activity on my state tax return.

Quick background:

My resident state is NJ.  I have a rental property in TX.  I also received a Kentucky K1 from a real estate syndication fund as a limited partner.  I was able to enter all the investment information on TT at the federal and state level.   When I looked at the Kentucky forms, I noticed that TT is summing up all the passive losses on Form 8582-K - this includes the TX rental property and the syndication investment.  

Questions:

1.  Shouldn't TT exclude the TX rental property on the form 8582-K since this property has nothing to do with KY?  I was expecting Form 8582-K to only include the losses from the Kentucky K1.

2.  If the above statement is true, how do I tell TT to exclude the TX rental property from the Form 8582-K?

Thanks!