Are you saying you figure the basis limitation by using the K-1 Part III Line 1 Supporting statement?
I could see how that could give you the correct computation results, but wouldn't it look odd since the K-1 you are putting in the return wouldn't match the original submitted with the 1120S?
Also where do you attach your basis statement that supports the limitation you placed into the K-1 line 1?
Do you just attach it as an "other" attachment to the return in the Efiling center and make a memo that its for Schedule E Line 28(e)? And do you use a spreadsheet to compute the basis if you did not receive a basis computation with the K-1 from whoever filed the 1120S?