When an S corp sells its business at a loss, are the losses which includes mostly  1231 losses, and some carryover from prior year losses not taken due to basis limitations , is the shareholder able to take all the losses on the K-1  or do they lose it forever like an NOL for a C Corp

l Business was run basically form Loans from relatives  which is not part of the basis. 

Any help will be appreciated

Thx

Mike