I have a new client who is the sole stockholder of an S corp. Someone else prepared the 2020 1120S, but it was done late so my client has decided to change tax preparers. I am now working on her 1040 and there is no S corp basis worksheet available, so I am calculating a 12-31-19 basis from the balance sheet numbers (Loans from S/H, Capital Stock, APIC and AAA) on the 2019 1120S. I have done that before and that is all that can be done in these situations, BUT this particular S corp started out as a C corp and has a debit balance in Retained Earnings of $80,000. It doesn't seem that this RE amount should be included in the basis calculations, but is that correct?