Agree.  However this fund also hold operating companies, similar to a PE fund.  And because I am not managing the investments (those companies) or the fund, the operating loss that is reported to me on Line 1 is passive.  I agree that all of the other items on the K-1 (e.g., cap gains, interest, dividends, fund expenses) are not passive.

This fund eventually disposed of the operating company in 2019 and I want to now capture the current and prior year's operating losses.  I could wait until I fully redeem from the fund and get a final K-1 but I think that since the asset is gone from the portfolio, I should be able to recognize the losses, even though I still hold the investment.