Business & farm

In reading this again, we really need some clarification:

• You need to clarify why you have suspended losses.  My initial response discussed passive activity loss rules, however, your response indicates that you materially participate in the S corp.
• If that is the case, then as @LudwigVan_fan noted, you must have suspended losses as a result of no basis.
• And if that is the case, then the only way to utilize those losses is to generate income from the S corporation.  That income will provide basis and then you can offset that income with suspended losses.
• To address your overriding question, here is a simple example; $70,000 suspended losses (since you materially participate I am assuming no basis).  Income in 2019 of $10,000.  In 2019 you will report  the $10,000 of income, but then this will be offset by $10,000 of suspended losses effectively netting to zero.  You now have $60,000 in suspended losses being carried over as a result of no basis.
• Now let's say in 2020 the S corp dissolves and the K-1 generates another $5,000 in income.  Once again, you will report the $5,000 of income and offset this income with $5,000 in suspended losses and once again this nets to zero.  You now have $55,000 in suspended losses.
• At this point since you have no remaining basis, you are not able to take any of the $55,000 in suspended losses.  While you may think this is wrong, if you think about this it is correct.  You can't take more in losses than you are economically out of pocket.  That is why your basis can never go below zero.
• The example is simple, but hopefully provides some guidance to your question.