You need to make sure you use your basis schedule when determining gain or loss....not just the difference between what you put in and what you just received. Your basis schedule needs to be updated each year for your K-1 activity. This is extremely important.
If you are comfortable that your loss is correct, then this gets reported on Form 8949 which will then carry to Schedule D.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
