Maybe. It helps for the future when the property is sold, in case VA allows carryover of passive losses.

VA uses Form 763 for individuals. I assume the partnership preparer filed the VA K-1, along with the VA 502. Partners don't file K-1s.

<<The NY k-1 shows 100% allocation of the loss to NY.>> NY residents own 100% of their interests and report 100% of their loss.

<<The VA k-1 shows the 1k loss as well.>> Property is in VA 100%, according to you.

If there is a gain on the sale in the future, 100% gets taxed in VA, then NY resident partner reports 100% of the gain and gets a VA tax credit.