As Mike9241 explained, liabilities on Schedule K-1 are not reported on your tax return. These amounts do influence your capital balance (adjusted basis), which should never go below zero. You may wish to contact the entity that prepared the K-1 to discuss this further, in case you should have allocated income to bring your balance up to zero.
Capital balance reconciliation is complicated and can become an issue for your tax situation. We recommend you contact a tax professional with experience in partnerships for advice how to proceed.
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