Are my losses in a limited partnership deducible.

[ThomasM125]

I think you mean you received a K-1 schedule from your partnership and it reports a loss in line 1, 2 or 3?

If so, the losses will be either passive or ordinary, depending on the nature of the activity and the level of participation you have with the venture. Since is sounds like you are a passive investor, the loss would likely be passive income. Also, if the loss was from rental activities, it would be by default considered passive. 

You can deduct passive losses only against passive income, or in the case of rental activities, up to $25,000 per year, with restrictions based on your income.

Also, you can only deduct losses to the extent you have a positive basis in the investment. Basis is basically what you invested, plus income your reported over the years, less losses you deducted, and less any non-taxable distributions you took.

When you enter your K-1 form in TurboTax, you will be asked the pertinent questions to determine if the loss is deductible in the current year. If not, you can carry over the non-deductible loss to future periods.

[dodgers90210]

Losses for limited partners are never ordinary losses......if they were they wouldn't be limited partners.

[Alk1]

I should have clearer. The company went BK.

[RobertG]

If you received a K-1 you can write off the loss when you enter the K-1.

Otherwise you can report it as a Sale of Business Property in the income section under Other Business Situations.

I would use as the "sale date", the date when you reasonably knew the investment was worthless.  

Sales price would be zero. 

Your basis would be whatever part of your investment you did not deduct in prior years, increased by income reported, and decreased by distributions you received.

Suspended losses would deductible in the year of disposition in full (up to the amount of at risk). As to the remaining amount of your investment, that would be a capital loss.