If my passive rental k-1 qualifies as an active trade or business do I manually exclude from form 8960 or is there a check mark somewhere?

Form 8960 is automatically completed based on your entries in TurboTax. In order to exclude the income from a Schedule K-1 reporting rental activities, you must be a real estate professional that materially participates in the rental activity.

For more information, see: IRS Instructions for Form 8960 Real Estate Professionals