then separate schedule Es for rental activity are filed.
I know that's true for SCH C. But SCH E? I can see separate SCH E's if the couple is filing MFS. But if filing joint, then one can select the option that indicates it's owned by "both of us", and there's no need for separate SCH E forms - even in a community property state.
Don't know if it's been mentioned yet, but if on the partnership return the property was not reported on 8825 and depreciated appropriately (27.5 years for residential rental, or 39 years for non-residential rental) then the transfer to SCH E is not simple, and will require professional help. Especially if their state taxes personal income.
