Switch owned rental property into llc

How would I make this change on my Schedule E ( which I have been doing for years)? 

 

Also, What's the real truth about "piercing the veil"? Am I doing this for nothing since the only reason I am considering doing it is purely to protect this paid off property from lawsuits from within the building, and from my other outside businesses. ( I Know many investors suggest forming a separate llc for each rental properly)

Opinions?