My K-1 1065 shows net income of 40K, but box 1 shows ordinary income of -10k. If I just follow questions in turbotax it shows as total negative. What am I missing?

Please clarify where your Form 1065 Schedule K-1 reports net income of $40,000.

That is in section L of part 1. The income of 50K is shown in Box 11ZZ, and no matter what I do nothing from box 11 trickles down to 1040. I tried changing Passive/Non-passive partner. I tried changing the letter category of box 11. I tried deleting that partnership from turbotax altogether and entering it anew. I tried restarting TT many times.
No matter what I do info from Box 11 is completely ignored

How is the Box 11 Code ZZ income described in the K-1 supplemental information? In most cases, you need to manually report this income in another section of your return - it doesn't flow like most of the other income boxes.

Once you have identified where this income should be reported, use the Search box and enter the form number/name. From the list that appears, select the topic that best matches the description given in your K-1, and then let TurboTax guide you the rest of the way.

And then there is this:

THE PARTNERSHIP HAS TAKEN POSITION THAT IT IS ENGAGED IN THE

ACTIVE CONDUCT OF BUSINESS AS A "TRADER" IN SECURITIES.

UNLESS OTHERWISE INDICATED, THE TRADING ACTIVITIES OF THE

PARTNERSHIP ARE NOT PASSIVE LOSSES AND ARE NOT PORTFOLIO

LOSSES FOR PURPOSES OF THE PASSIVE ACTIVITY LOSS RULES UNDER

TEMP. REG. SEC. 1.469-1T(E)(6) AND SEC.1.469-2T(C)(3)(II)D).

CONSULT YOUR TAX ADVISOR.

1 more paragraph, if that helps

INCLUDE GAINS REPORTED ON FORM 4797, PART II,ON FORM 4952,

LINE 4A. THIS INCOME IS CONSIDERED PART OF NET INVESTMENT

INCOME FOR PURPOSES OF COMPUTING THE NET INVESTMENT

INTEREST EXPENSE DEDUCTION.

@PatriciaVCan you please advice on how to enter that data from K-1p box 11ZZ in Turbotax? I have tried both the online and the desktop versions. There is no access to the forms in online version at all. In the desktop I do see form 4797, but most of the fields are not editable.
Thanks in advance!

According to the instructions for Box 11 Code ZZ that came with your K-1, you do not need to enter anything for this box. Instead, follow these instructions:

1. Substitute Payments in Lieu of Dividends are reported as Other Income. You can enter this as Miscellaneous Income under the Less Common Income topic of Wages & Income. Choose "Other reportable income" and enter a description that reflects the source (ex: K-1 Box 11 Payments in Lieu of Dividends). This income will appear on Schedule 1 Line 8.

2. Section 475(f) Mark to Market adjustments are reported on Form 4797 as the sale of business property held for less than a year. See this TurboTax article for the step-by-step instructions to enter this amount: How do I report my trader activity with or without Section 475(f) election in TurboTax?

You should be able to make these entries in any paid version of TurboTax.

@PatriciaV 
The above suggestion in regards to Box 11 ZZ worked. Thanks a lot!
Now I have similar problems with Box 13 ZZ and Box 20 A, Z, and AJ.
The instructions for Box 13 ZZ tell that I am supposed to report that as

EXPENSES RELATED TO TRADING ACTIVITY  on Schedule E.
I see that amount on the worksheet, but it does not reflect in the Schedule E, and in the final refund.

Also Box 20 - I do not see it affect the bottom line

Hi @PatriciaV 
Upon further review of the suggested solution re: Section 475F election, I got the next question: My K-1 instructions tell me to report that gain on Form 4797 Part 2. However after I went through steps on
How do I report my trader activity with or without Section 475(f) election in TurboTax? 
the number appeared in Part 1 line 7. Part 2 remains empty, even though it mentions gains from line 7 in the line 11.

Is that normal or a bug?
BTW, comparing this to my last year's return I see that last year it went to Part II. All my actions are the same. What is the root cause of the difference?
------

Found it myself. There is a small dropdown in the form mode in 4794 which tells whether it should go to Part 1 or Part 2

If you are using TurboTax Online, I can't tell you how to get the gains from you Section 475(f) activity to flow to Part II of Form 4797; however, if you are using TurboTax Desktop, it's pretty simple.  In Turbotax Desktop:

• Click on the Forms icon in the upper right of your screen.
• This will you to the Forms mode
• Click on "Open Form" if the upper left of your screen
• Click on Form 4797 p1: Sales of Business Property
• Scroll down a little to the entry table
• Enter your gains from your K-1.  You can use Various as Date acquired, 12/31/2024, as Date Sold, and a cost basis of $0.Your gain will be reported in Part II of Form 4797

If you are using TT Online and want to switch to Desktop, see the following for instructions:  How do I switch from TurboTax Online to TurboTax Desktop?