Please walk me through how to handle an S-Corp loss.

I started the S-Corp business in 2000 and it was profitable for 20 years. I had a professional help with taxes that first year but since then have done it myself. I do my own personal taxes as well.

I am the sole owner so there is only 1 K1. 100% 1120S profit goes my K1. That goes on my 1040 Schedule E, then in the past it went on to the 1040. In recent years, from E, it goes onto 1040 Schedule 1 - Part 1.

I am the primary employee. I have part time help but I do 95% of business labor and all back office. So no passive income. All investment is at-risk.

In 2020, due to the pandemic, we have been basically shuttered since March. My tentative 1120S bottoms out with a nearly $40K loss.

I need help in how to handle that. I would be carrying it forward. I would consider carrying it back but I have not decided on that yet.

First, the basis business. I put in $10K in 2000 when I got started. In late 2020 I put in $20K. I have that on the books as a loan. I could make that be additional stock if there is a benefit to doing so. Maybe it doesn't matter for our purposes here.

So if I understand the regulations correctly, I am limited to a $30K loss until I put more money in. Which I can do when the time comes.

I have not roughed out personal taxes yet but what I want to do is apply just enough of the 2020 S-Corp loss, that, when combined with the other deductions like IRA & HSA will take my taxable income to zero.

So I guess my main question is if I have about $-40K on the K1, where do I show that I'm going to only apply some lesser figure to my taxes. Some other form? Something on Schedule E I haven't figured out?

Thanks in advance.