The above only excludes the rental income from schedule K and not the K-1.

@nbeck Technically anything flowing to the Schedule K will then flow to the applicable Schedule K-1(s).  If excluding it from the Schedule K doesn't exclude it from the Schedule K-1, there may be an override entered directly on the Schedule K-1.

I checked for overrides and there aren't any.  

Ahh, could also be that the amount is coming from 'other schedule k items' input that goes to the 'other' line not really broken down on the schedule K itself, but does get included on the schedule k-1.  Example: partnership screen 22, section 'other information'.  Check to see if you have any input here.

The only item in that section that has any input is the box that is checked to "exclude rental activities." Which it is excluding on the schedule K just not on the K-1.

I see what you mean.  I was able to duplicate the issue.  I've looked further and found that this was reported to our developers on the 18th.  If you would like to be notified when issue INV-24963 has been addressed, you can contact support and make this request.  Otherwise, our next program update is scheduled for release tomorrow afternoon.  

Lacerte Release Schedule: https://accountants-community.intuit.com/articles/1738593&src=lsccom

You can also receive an email notification each time a program update goes live, by 'following' the ProConnect Lacerte Notifications - Lacerte Tax Program Updates for 2018 & Prior Years: https://accountants-community.intuit.com/announcements/1635976&src=lsccom