Definitely not deductible. First, losses between married people (related parties is not allowed) Second, that $1,000 gives the shareholder tax basis. Losses of a S-corp reduce the shareholder's tax basis. if any assets were left they were either written off or withdrawn. These also reduce your tax basis. Since it's highly probable that your tax basis was zero there's nothing left to write off. Double dipping is not allowed. Also, with an S-Corp for the last few years form 7203 was required and will be required for 2023. if done properly it tracks tax basis. Once your basis goes negative, further losses are not deductible. Schedule L may show $1000 as common stock but isn't there a negative $1000 or more on line 24, Retained Earnings, of Schedule L. Isn't M-2 column a line 8 a negative $1,000 or more?
