Thank you all for helping me with my question. After speaking with my accountant, here's what I did:
I entered the properties with the basis info of relinquished property but the date in service of the replacement property. This gave me the correct prorated depreciation for this year and also the correct annual depreciation. The only problem was that the depreciation schedule did include the prior depreciation so it went on for 27.5 yrs instead of the shorter period of time. My accountant said that as long as I tracked the prior depreciation and when the depreciation is used up, I could use that schedule.
