How is a loss in an LLC split between the partners?

Gary - unless the agreement provides differently, losses are allocated in the same way profits are allocated.  Understand however, your ability to personally deduct the loss might be limited by 3 limitations imposed by the tax code.  Losses cannot be deducted in excess of 1) your basis, 2) your at-risk basis or 3) application of the passive activity rules. Attempting to explain these 3 limitations is beyond the scope of this format.