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Supplemental business expenses (SBE) from Form 2106 not carrying to Schedule E
S Corporation shareholders are viewed as employees of the S Corporation. Because of this, you should report unreimbursed expenses on Form 2106.
S Corporations don't report SBEs because they need to report them as unreimbursed business expenses (UBE) on Schedule E, Page 2. Instead, report these expenses on Form 2106. Only partnerships can report SBEs on Schedule E.