Thanks for the quick reply. That seems to work fine. In TurboTax Sched L is all zero. After zeroing out all B/S accounts but Retained Earnings and Shareholder Loan Payable, those two conveniently offset. To satisfy Turbotax I made an entry on M-1 Worksheet under "Other Permanent Income items:" for "Offset Shareholder Loan and Retained Earnings" which created a permanent book/tax difference, and carried forward to Sched K line 16b, M-1 Line 5a, M-2 Line 3, and Sched K-1 Part III 16B. Does that sound right? I couldn't find any other way to do it.
