You want to report Part I including line 47c.
Part I reports stock basis in the S corp. Part III line 47c transfers to Part I line 11
Part II reports debt basis but it is possible that you have no debt loaned to the S corp to report.
IRS Form 7203 Instructions page 1 states:
IRS Form 7203 is filed by S corporation shareholders who:
- Are claiming a deduction for their share of an aggregate loss from an S corporation (including an aggregate loss not allowed last year because of basis limitations),
- Received a non-dividend distribution from an S corporation,
- Disposed of stock in an S corporation (whether or not gain is recognized), or
- Received a loan repayment from an S corporation.
It may be beneficial for shareholders to complete and retain IRS Form 7203 even for years it is not required to be filed, as this will ensure their bases are consistently maintained year after year