Potentially, yes. A 401(k) contribution reduces your taxable income by the amount of the pre-tax contribution. However, keep in mind that since the deferral is made pre-tax, you might not "see" the result on your tax return per se. Rather, you will have less income reported to you as taxable on your W-2 (and corresponding 1040). Your rental income from Schedule K-1 will be added to this taxable income, and you will not have had additional Federal withholdings taken out against it.
Just a couple of details you might want to keep in mind if this is the election choice you wish to make.
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