Yes ... the properties must be legally transferred to the corporations which as Carl has often said it not needed to incorporate if you just want protection ... just make sure you get a sufficient umbrella insurance plan to cover your liability.
Once the assets are transferred over the depreciation starts over again using the donor's adjusted basis. Please seek local professional assistance the first year of incorporation so you get started correctly. If you don't have the S-Corp on extension the return is now late and you are accruing penalties monthly.
