Yes, your allowable loss is limited by your basis in the S-Corp, but your basis should have included any contributions you made in 2020 as an increase to the basis as well. You can review your basis worksheet from 2020 to ensure your contributions were correctly considered as an increase to your basis.
If your contributions were reported incorrectly, then your basis was calculated incorrectly and you will need to amend both your business and personal returns for 2020.
If your basis was stated correctly and the loss is truly a carryover, you will need to include the new Form 7203 with your personal return for 2021 to determine the allowable loss to claim this year.
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