Interest income offset with ordinary loss on 1065 K1

[tax newbie1]

Hi,

I have a client that gave me a form 1065 schedule K-1 for 2009 tax year that has ordinary loss about ~$9K and interest income of ~$4K. He has no basis (he works for the LP, and they gave him some shares). I know I have to report the interest income on schedule B, but can I report the loss up to the gain amount of interest income on schedule E Part II on line 28h? Thank you for your help.