Is there a Capital Loss Limitation for partnerships?

There is no limitation on capital losses at the partnership level. The total net capital loss for the year is allocated to each partner, and will appear on each partner's K-1 statement. The individual partner will combine his or her share of the partnership loss with any other capital gains/losses for the year. If, after doing this, the member has a net loss, up to $3,000 of such loss can be used in the current year, and the balance can be carried forward for future years.