Thanks again. The IRS guidelines clearly imply that you should include 1120S K-1 boxes 2-10 when calculating shareholder stock basis. And I didn't realize that box 17A includes all investment income. I now realize that box 17A is informational only. It doesn't really say that you don't include that in shareholder basis. BUT........................why on earth would box 16 say "Items affecting shareholder basis", and then NOT list any of the entries present in boxes 1-10, specifically box 4 "Interest income". I trust your answers and will add box 4 to my basis; but is this just a poorly designed IRS form? Perhaps it would make more sense to everyone if box 16 said "Additional items affecting shareholder basis". Ugghh!
