My client (S-Corporation) received a K-1 (1065) with a small passive loss.  There is no limited partner check box anywhere on the 1120-S.  The loss is reported under "Other loss" (line 5 with partnership info) and reduces my overall business income.  Is there any correct solution?  Example: business income is $50,000.  Passive loss is $2,000.  The K-1 automatically reports $48,000 ordinary business income (line 1) where it should only be $50,000.