Mamasteph2013
Level 2

I have a client who is a shareholder in an s corp.  She loaned the S corp money and has received interest.  This interest is included in interest expense on the P&L.  The only place that I could find to enter the self-charged interest on the k-1 was on screen 36.  This entry places this amount in **bleep**.  What am I doing wrong?  Which form is correct?  I tried entering self-charged interest in box 10 of Schedule K, but when I put it there, it divides it between all shareholders and messes up the M-2.  This company has not elected to avoid the rules for self-charged interest.  Please help.

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