does the last K-1 have an amount in part II, section L, ending capital account? If present, is it positive or negative?
If positive, that should represent your remaining basis for purposes of a capital loss if you conclude a write-off is proper at this time. If it's negative, that creates a tax issue because it would mean that more losses were incurred than you invested, less the cumulative net losses and distributions. This can happen when liabilities are allocated in section K-1 ending column. (also possible is that there are no liabilities allocated and ending capital is negative. This means more losses were allocted/taken than your tax basis which is not allowed. There should be suspended passive losses since your husband, being a limited partner, should not have had any active role in the operations, making any losses passive. Passive losses other than rental real estate are suspended until the partnership interest is disposed of or there is partnership income to offset them
