Any input that gets you the desired output is fine; when it comes to K-1s, the IRS sees none of the input and only the output.

Do a schedule in Excel. Figure out what losses, if any, free up, for each pass-through. Set up new K-1 entries for those entities, assign those allowable losses to the freed-up entity, and mark them 2=delete next year.

A large step-up usually eliminates the problem. It's only an issue when, and to the extent that, the PAL is larger than the step-up.