First, S corporations do not carry forward losses from one tax year to the next tax year; net business profits (income) and net business losses are passed through to the shareholder(s) on Line 1 of K-1 (1120-S) each tax year.
Second, are you saying that your assets are showing as a negative number on Item F of your 1120-S?
Next, your salary would be a deduction for the corporation on your 1120-S and reportable on your 1040 (personal tax return) as W-2 income.
Finally, your S corporation can pass a net loss through to you, as a shareholder, on Line 1 of your K-1 but you need to have basis in the corporation in order to recognize that loss on your personal income tax return.
I am also going to page Champ @Rick19744 for further input.
