I have an S Corp that had a loss last year. In all previous years, this loss has transferred to Line 17 on Schedule 1 of my Federal tax return. Last year, the accountant in the new state we moved to did not enter that loss on Line 17. Instead, he put a footnote on Schedule E of the Federal return that the S Corp loss was limited by basis. I don't think this was the correct thing to do. With an S Corp, basis increases by the capital contributions that are needed to pay the expenses. I'm trying to find out 2 things: 1) should I have been able to take this loss on my Federal return and 2) If I was supposed to have that loss on my federal return, is there a way to input the loss in TurboTax business for 2021? It looks like it would fall on the 179 Carryover page, but it won't allow a negative number in the Section 179 QBI for 2020.
