When imputing the 754 depreciation deduction on line 13 of the K1 worksheet code W in Pro Series the program does not take the deduction any where. Appears you have to manually enter the figure.
Have a client same circumstances. Proseires subtracted the depreciation directly from the box 2 rental income and put the net on Schedule E p2. Did for several years. In 2018 IRS sent a notice saying 1040 E p2 income did not match their K-1 box 2 records. Got a transcript and IRS only lists K-1 income, no deductions. Had to explain Proseries did the deduction and put net on E p2. They accepted my explanation and no tax bill. If I had to do again( no longer use Proseries) I would use 2 K-1's to show the Gross K-1 box 2 income and separately the 754 deduction so both show on E p2.