Cpa Cat,
Yes, indeed there is a prompt on the K-1 entry screen regarding UPE, which I have checked. However, TurboTax instructs me to use the worksheet on Pub 587, which I have to fill out and calculate manually, then enter the resulting number (not fun!). My understanding is that Form 8829 is for Schedule C businesses, not partnerships, at least thats what the instructions say. Not sure if there is any difference since they look similar.
Also not sure if I need to also include Form 4562 for depreciation of the house or if my Pub 587 worksheet takes care of that. Instructions on this worksheet are unclear to me.