Can't answer your question, but TurboTax walks you through K1s, line by line. Last time I used TaxCut (tw0 years ago?), TaxCut left you on your own with K1s. Otherwise, there are IRS publications that are almost as clear as a Microsoft User Manual.
IRS Form 1065 is the K-1 Instructions IRS Publication 541 Partnerships IRS Publication 925 Passive Activity and At-Risk Rules
The Premier edition of TurboTax seems to handle K-1 pretty well. Just be sure to fill out the table enties for some of the fields as this opens additonal entry pages up. That is, when the K-1 has multiple entries under a number (box 20) and you do not see any place to enter the item there will be an entry that opens up another form where the line item can be input.