Investors & landlords

Yes, my husband and I are both salaried employees in banking and government.  We file a 1040.  Our partner is a self-employed carpenter who has an LLC that is a disregarded entity and files only Sch C.  We formed an LLC for the purpose of building this spec home and possibly others.  Our partner owns 50% and my husband and I own the other 50%.  All of the expenses regarding the home were capitalized into the home and once sold, we had a $20,000 or so loss.  Any LLC expense outside of the home (secretary of state filing fees, for example) were minimal and included on the form 1065.  I am wondering how to show the loss on sale on the LLCs tax return and associated K-1s.  Are we allowed to each recognize $10,000 of loss on our 2020 tax returns (as it would flow thru the K-1s)?