Taxguru, i believe i found a part answer
"it is perfectly reasonable not to take a salary when the corporation does not have the wherewithal to pay you a compensation.

The key factor to bear in mind is that there is sufficient basis to deduct the losses in 2007. Hence, you should try and ensure that there is sufficient basis that will offset the losses in 2007. If there is not enough basis, then I would suggest that you increase basis at least to the extent of the losses."

with that in mind, its okay that i take no income., but in order for me to take advantage of the s corp loss, i need to at least equal my basis in the corp?