Loss from a Syndication investment

[Mukesh Yadav]

Hi All,

I have a question for those of that are tax savvy. If you have a loss from syndication investment ( the entire project went bust) can you use that loss (from the final K-1) to offset your regular W-2 income ? 

We all know that generally passive activity losses can only be used to offset passive activity income, BUT, if if the project/investment is completely closed out and final K-1 generated with a loss, in that case can that loss be used to offset regular W-2 income ? 
Hope I have articulated the question properly...

Mukesh