| Can an S Corporation claim a loss despite the Officer/Owner's taking a high salary?
The loss generated from the S Corporation reported on the shareholder's K-1 is generally deductible on the individual tax return provided there is sufficient shareholder basis to offset the losses.
The fact that you as the officer of the corporation took a reasonable salary that contributed to a loss makes no difference. Clearly, taking a reasonable compensation is always a smart decision. So, provided you have sufficient basis available in the S Corporation, you would be allowed to deduct the K-1 losses on your personal tax return.
These losses would allow you to offset the W-2 income and other income that you received from all sources thus resulting in a lower taxable income, contributing to a lower income tax liability. | 
