how do I record a loss on liquidation of a partnership

To report your gain/loss for this investment, go back to the Schedule K-1 entry screens and follow these steps:

1. Describe this Partnership; "This partnership ended in 20XX" and "Complete disposition."
2. Tell Us About Your Sale: "Sold Partnership interest." This allows you to report the gain/loss.
3. Enter Sales Dates: initial contribution date and date the investment shut down.
4. Enter Sale Information:
      Sale Price = 0
      Partnership basis = initial contribution adjusted for any activity from Schedule K-1. 
5. The next page displays the gain/loss summary for the investment.

Be sure you have accounted for any distributions of cash or property from the liquidation, which would affect your basis in the investment.