If the loss was associated with qualified business income (QBI) it may reduce QBI from other sources listed on your return that could reduce your QBI deduction that may result in an increase in tax. The QBI loss may also be carried forward to future years if not used in the current year. If you have a reference to section 199A income on your K-1 schedule, it may not be wise to not include it in your tax filing.
A better strategy would be to eliminate the entry on the K-1 that is creating the credit to appear on Form 3800, General Business Credit.
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