This will be complicated. I guarantee it. I would highly suggest you seek face-to-face professional help for this. Especially if you are required to file a state return, as this will double the issues you have to deal with.
Basically, you have to close the partnership and file a final 1065. The partnership will then issue each of you a "final" 1065 K-1.
Then you have to report the "new" QJV on SCH E as a part of your personal joint 1040 tax return. If you're using the CD version of TurboTax, you can pop into forms mode real quick and put a checkmark in that "Qualified Joint Venture" box on the SCH E worksheet. But if using the online version, forms mode is not an available option unfortunately.
