Can I claim losses from my K1 form

[mstolp]

I have paid taxes on profit from a construction business for the past 2 years in which I am an investor. I had a loss this past year and  I'm not sure I meet the material participation criteria so does that mean I can't deduct my loss?

[RichardK]

You are correct, if this is a passive investment, you may be allowed to offset the loss against other passive activities, but may not be allowed to offset the loss against ordinary income or portfolio (e.g. interest and dividends) income.