Deductions & credits

unless the partnership activities are being aggregated (treated as one activity) the loss on disposition should be allowed.  This should be the same treatment as if a taxpayer directly owned multiple rental properties and did not aggregate them. on complete disposition in a fully taxable transaction of any of them losses should be allowed and actually not treated as passive. 

however, Turbotax does not have a good way of handling this at the partnership level except to use a second    k-1 and then you have to answer certain questions in a certain way to have the loss allowed

1) partnership was ended in 2023 = check the box. yes. I know it's not absolutely correct since it seems partnership B continued with the other property, but the IRS does not see this answer.

2) complete disposition - check the box

3)sold partnership interest - check the box. this is also not absolutely correct but the iRS does not see your answer

4) enter dates you can use 12/31/2023 if you don't know date of sale of the property

5) for sales information all boxes should be entered as zero