Schedule K- 1 is reporting your share of the partnership ordinary loss for the year. If you don't have sufficient basis in the partnership to claim the entire amount of allocated loss, the excess will be carried forward to future years as a passive loss carryover. The carryover will be applied to passive income in future years.
The loss from the dissolution of the investment is a capital loss, some or all of which may be deductible this year (depending on other capital gains also reported on your return). Again, if you don't have capital gains to offset the loss from this investment, any excess will be carried forward as a capital loss carryover. You can claim up to $3,000 of capital losses each year until the carryover is used up.
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