The loss on a the sale/closing of the partnership is entered as the sale of an investment. You'll enter what you paid for the partnership and then enter what you received (which may be zero). The loss will be entered as a long term capital loss (since you held the property for more than a year). That loss can be written off against other capital gains or deducted against regular income at the rate of $3,000 per year.
Any deductible expenses you had for the partnership should be entries on the K-1 and will be deductible in the current year.
@ajsmall65
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