As you know, SCH E is used for reporting both rental income and royalty income, as both types of income are passive.
It also matters what kind of K-1 you have. 1065 or 1120-S?
If a 1065 K-1 and it has income reported in both boxes 3 and 7, then you need to enter the data "as if" you received two K-1's. One with the income reported in box 3 and the other with the income reported in box 7.
Do not duplicate the monetary values in other boxes, across the two K-1 entries.
