Thank you for responding.

I checked and the nonpassive box in screen 18 is not checked. Form 8582 is being generated, but it allows the rental loss.

The K-1 input nonpassive box has been checked, and the K-1 income does show as nonpassive in the workpapers.

I had run the return a few days ago, and the rental loss was not allowed. Due to a computer problem, I had to reinput and rerun the return, with the result as described in my original post.