I would wrap the corner ending the crown molding in the 5" space. On
the piece of molding that will cap the end, you may want to glue on
using a block for support.
John

Rob wrote:

I'm installing crown moulding in the dining room which has an opening
between the dining room and the kitchen. The opening goes right up to
the ceiling so I was wondering how I could "end" the moulding. I do
not want to install crown in the kitchen so does anyone have any
recommendations where it should end and how the end should look?
Should I end it between the 2 walls (5" space) or should I make a
regular corner into the kitchen and end it about 12" in?

kitchen wall
________________
|
| 5"
________________|

dining room wall