it is difficult to give exact answers because I can not see any of the K-1's for this entity that I'll call A
so here are the assumptions I'm using
1) A is not a publically traded partnership, if it is #2 doesn't apply
2) in prior years you had no passive income from other entities. if so their PAI would have reduced A's PAL carryover. you would see this on form 8582 and related worksheets. and TT would have carryforward for A the reduced amount
3) you invested $25,000
4) over the years A reported PAL's totaling $25,000 or more
5) over the years you received no distributions
6) over the years A reported no portfolio or other income or losses not subject to the PAL rules.
7) I have no idea why schedule L reporting on a tax basis has a positive amount for both beginning and ending capital. I would think that if there had been net cumulative losses of $25,000 or more the ending balance would be zero or negative. You can review prior K-1's but if not apparent only the partnership's GP or tax preparers could answer. This may or may not affect your return.
summation:
assuming a) item 7 has no effect
b) you had no other schedule E reporting
c) my other assumptions are correct
then line 29b, 31,32 and 41 of schedule E would show $25,000 in losses that gets carried to schedule 1 line 17 and the net of schedule 1 gets carried to 1040 line 6
