Sorry, I shouldn't have used the term carryover or carry forward, that was misleading - let me explain it another way:

Client has a $35,000 rental loss.  Client is not a real estate pro, so he can only deduct $25,000 of the loss.  ProSeries correctly shows a $25,000 loss on Part III of 8582, but incorrectly shows a $35,000 loss on page 1.  This is a 1041 return, first year, so no carryover issues, and no other passive income.