Yeah, I'll echo what ManVsTax says, it's "good" to understand what is going on, but personally, I wouldn't do anything with the two K-1s' information unless and until I knew - or thought I knew - what's really going on. Call somebody, and then call somebody else, and see if you can get two sources with the same explanation before you plunge blindly into this one. There is an answer out there, and it's only phone call away. It will be much harder to undo this if you get it wrong the first time around!!