Thank you.  

Here's the IRS stance along with their example.  https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-stock-and-debt-basis

The 4 ordering steps are mid-page above where it says "Stock Basis Example".

The example deducts the $1,000 non-deductible expenses from basis first then allocates remaining basis only between ordinary loss and charitable contributions.  It does not include the $1,000 non-deductible in the pro-rata allocation of remaining basis. 

In prior years I have ignored the fact that Proseries does not follow this example.  However, I have a 1040 client who has a couple S Corps prepared by a large CPA firm.  For one S Corp the 2019 ordinary loss is very sizeable  and the non-deductible is several thousand (significant M&E due to nature of business).  So whether I deduct the non-deductible first against remaining basis OR allocate non-deductible pro-rata with items of loss and deduction is a difference of a few thousand in the amount that the taxpayer can deduct.

It is much more noticeable now that we have to attach a basis statement.

Your thoughts?