the 8582 reporting is correct it is merely used to calculate the amount of passive losses allowed. if you had $150,000 of passive losses and $100,000 of 1231 gain only $100,000 of passive losses would be allowed. the passive loss flows to schedule E page 2 while the 1231 gain (assuming you don't have other gains or losses reported on 4797) flows to schedule D.
you get long-term capital gain treatment on the 1231 gain (see capital gain/qualifying dividend worksheet) while the loss goes against other income in figuring your taxes. note that your ordinary income can push the capital gain into a higher tax rate.
say on a joint return wages are $175,100
k-1 ordinary loss -$100,000 1231 gain $100,000
standard deduction making taxable income $150,000
tax on $50,000 (the ordinary portion of taxable income) tax about $5600
tax on $69,200 of capital gain 15% or about $10,400
tax on $30,800 of capital gain $0
total about $16,000
now increase wages to $275,100
tax on $150,000 (the ordinary portion of taxable income) tax about $24,500
tax on $100,000 capital gain 15% or $15,000
total tax of about $39,500
so that $100,000 extra of ordinary income increased the tax on that portion by $18,900
but it also pushed an additional $30,800 of capital gain into the 15% bracket or an additional $4,600
