Happy day Bob,

I recall that the IRS doesn't do K1 matching very well, if at all.  So what I have done the past two years is I split the K1 into two pieces for entry onto his 1040.  Using the ratio of workshop to consulting, I split the K1 and the 199A info.  After I wrote my question, I posited the idea that since the costs are so low, it would be better for him to start a 2nd entity.  Even with the related party ownership rules, I think it can be cracked and packed.