K-1 rental real estate loss vs rental income

[bob37433]

I entered the data from K-1 form for a passive partner in a real estate investment.  The investment reported a loss for the year but also paid dividends/distributions during the year.  In TurboTax the form is showing that the loss is "suspended for the current year" and shows the net income/loss as $0.  Just want to make sure that this is correct.  Seems like the loss would be deducted from the income to arrive at a net income/loss number.  In my case the loss is larger than income so the net would be a passive loss for the year.

[ThomasM125]

Passive losses are not deductible from non-passive income. Dividends are considered non-passive income, so the loss cannot be used to reduce them. So, it sounds like the net income of $0 is correct on your tax return.