It shouldn't show as a loss in "Other Income", it should be on Sch 1, Line 5.

And your previous comment "Aren't I supposed to reflect my K-1 loss from my S-corp on my 1040 and take the deduction to lower my taxable income? Isn't it the reason why we establish S-corps?"

Establishing an S-Corp for losses seems like alot of work for no reason...you could have had a loss on Sch C just the same.