Limited partnership dissolution

[coachdwi]

If a limited partnership dissolves entirely and my entire investment is lost and shown as a capital account loss on my K-1 is the only tax treatment a Passive Activity Loss that may offset other NIIT gains?  So perhaps no real deduction?

[MaryK4]

 If you have a capital loss on the disposition of an interest in a passive activity, the capital loss deduction is limited to the amount of your capital gains plus the lower of $3,000 ($1,500 in the case of a married individual filing a separate return) or the excess of your capital losses over capital gains.  You would be able to carryforward the capital losses.  It is very limited.

[coachdwi]

Thank you MaryK.  That is what i was afraid of.