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we need more info because, depending on the facts, the loss could be an ordinary business loss or a capital loss. What type of entity was it? what happened to it?
A single-member LLC would likely be an ordinary loss. A multi-member LLC could be capital but it depends on your basis and losses and distributions to determine your tax basis during the course of your ownership
a publicly traded partnership would likely be a capital loss, but you woukld ned to use the supplemental sales schedule to determine the proper reporting
Start by entering the K-1 income into the return as you typically would each year, follow the prompts until you see this screen - then check one of these 2 boxes for disposal (the top box, for a full disposition):
The program will guide you from there to enter the necessary details to report the long-term loss on sale / redemption of partnership interest, which will flow to Schedule D / Form 4797 / etc., given your specific entries to the following question prompts. Note: ownership and sale of a partnership interest is usually a capital gain/loss transaction, and should flow to your individual capital losses.
Learn more:
IRS LB&I - Sale of a Partnership Interest
TurboTax - How do I report the sale of Publicly Traded Partnerships [...]
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