You reported your loss incorrectly. The final 1120-S should have reported zero income and whatever regular business expenses you had for the year. the only loss that you would have had reported on your K-1 would have been an ordinary business loss. Or just plain zero if you didn't have any business expenses. That is what would have carried over to your personal tax return.
The loss of your investment in the business would be entered as a sale of an investment. It will result in a capital loss that you will carry forward for the next 20 years and be able to take a $3000 annual loss credit on your taxes against regular income or take the entire loss against any capital gains that you would have. It's considered the loss of an investment, not a regular income loss.
That will not result in a negative income for you for the year based on the numbers that you provided.
@dalloelhadj0
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