Enter on line 14c the partnership's gross nonfarm income from self-employment. Individual partners need this amount to figure net earnings from self-employment under the nonfarm optional method (NFOM) on Schedule SE (Form 1040), Part II. Enter each individual partner's share in box 14 of Schedule K-1 using code C.
it will have no effect since you hve a loss, you will not be using the NFOM
There may be another issue because of the loss; you need to have tax basis to deduct it. If your capital account is negative, this may indicate you don't have tax basis. However, liabilities, if any, may be allocable to the partners and treated as additional basis
https://www.irs.gov/instructions/i1065sk1#en_US_2025_publink1000127745
