You are not permitted to pick and choose which tax year you report either your income or your losses. These need to be reported in the appropriate tax year based on your method of accounting; which as an individual is most likely cash basis.
The other piece to this final K-1 is determining your overall gain or loss on this investment. This is determined based on your basis schedule that hopefully you have maintained and updated annually for the applicable lines on the K-1.
The K-1 Part II Section L may or may not be your tax basis.
Your ability to claim the current year loss is also determined by whether you have sufficient basis. So having an updated basis schedule is critical to maintain and understand how it impacts each year and the final year.
*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.
