Hello, I have a bit complicated situation:

Client has a K-1 from 1120-S with negative balance on line 1 Ordinary business income (loss) of ($50,000).  He also has an officer compensation of $70,000, which i entered in Other Income since he didn't 1099 it. 

The question is shouldn't the K-1 loss of ($50,000) be deduct from the $70,000 and leave a balance of $20,000 as income?? 

In his personal 1040 form, the K-1 loss of $50,000 is not reflecting.  It only shows the $70,000 income that he has to pay taxes on.