Is the loss I received on my partnership K-1 fully deductible?

An individual's share of partnership losses (reportable to a partner on a schedule K-1) may not exceed the adjusted basis of the partnership interest. The basis is generally the original capital paid, plus accumulated taxed earnings that have not been withdrawn, less withdrawals.
Partners are subject to the at-risk loss limitation and the passive activity loss limitation rules.
The at-risk limit affects the amount of the loss to the portion that that partner is personally liable for. Generally a passive loss is limited to either passive income or up to $25,000 if there is active participation in a rental real estate activity.
There is no easy way to explain these rules. Please contact a local CPA to determine the deductibility of the loss reported on Schedule K-1. This area of the tax code is quite complex and confusing to many.