Carl
Level 15

Get your taxes done using TurboTax

Nothing changes really. Assuming you and your spouse were the only owners of the multi-member LLC, and assuming you will be filing a joint return for 2022, you will enter the property in TurboTax using all the original information, to include the original in-service date for all assets, including any assets already completely depreciated, cost basis of each asset, prior depreciation already taken on each asset, etc.

Now you'll be reporting a "final K-1" for each of you, up to the date of dissolution of the LLC, which I assume will be some time in 2022. So you'll end up with data on both pages of the SCH E.  Page 2 will contain the data from the final K-1's you'll each be issued by the LLC, and page 1 will have all your information on the rental starting one day after the LLC is dissolved. 

Assuming no assets are changed, the total depreciation taken on the rental for 2022 between the final 1065 and page 1 of the SCH E will match the total taken in 2021 on the 1065.

Just remember, on the final 1065 you will show the property and all assets as "removed for personal use" on the date of dissolution.  Then when you enter the assets on the SCH E using the original in service dates, the only thing you'll change will be the "prior years depreciation" already taken, so that the total will include the 2022 depreciation taken on the 1065 up to the date of dissolution when you removed the property from service in the LLC.