Taking S Corp Loss at the end of the year

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@kevin_ny_2003 wrote:

Can these losses be allowed to be transferred on my personal tax return?

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The net loss can be transferred to your personal income tax return via the K-1 (1120-S) from your S corporation.

Note that you need sufficient basis to recognize the loss on your personal return or the loss will be suspended.

See https://www.irs.gov/instructions/i1120ssk#idm140355075930352

also, be aware that Turbotax does not track basis.

I took at PPP small business loan which was completely forgiven in the same FY 2021.  I suppose loan is not an income and it was forgiven so it evens out in balance sheet. How should the loan be used  to calculate the basis or it can't be used to track the basis?

Thanks

Loans from outside sources are NOT considered in the owner's basis calculations.  The PPP loans that are forgiven are not income nor a deduction when forgiven ... this is only a balancing  book entry in your records. 

@Critter-3 is correct. Read the debt basis section.

Shareholder's Instructions for Schedule K-1 (Form 1120-S) (2020) | Internal Revenue Service (irs.gov)

Thank You both for the response. 

In this case if the revenue this year was less and I was able to pay in  payroll due to PPP loan ,  does this mean the losses resulting from this scenario will be washed off . How do I handle this case in Turbotax?

Thanks much

The expenses you paid using PPP money are still deductible on the corp return ... it is immaterial to the income tax return that the money came from a forgiven PPP loan ... again the PPP anything is only a bookkeeping entry and is not reported on the income tax return.   Due to this many companies will show a loss which is justified and allowed.