What you are describing is a loss on an investment, which is a capital loss.
An ordinary loss is a loss on business activity, sales minus expenses of those sales. If the value of your investment decreases, that is a capital loss.
Your loss is your initial investment + money transferred in - distributions - losses reported on your k-1 schedule - what is left over. The loss of your initial investment and money transferred in represents capital losses, not ordinary losses.
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