First understand that you can not file either your personal return (and neither can any of the partners) until you first complete the partnership return. That's because of the K-1's the partnership will issue to each owner, which they need to complete their personal return's with.
First, you start by preparing the personal return. For the rental property you will be showing on your return that the property is removed from service for personal use. Basically, you're converting the property from rental real estate, to personal use. THe date of conversion will be one day *before* it is acquired by the partnership. That date should not be a date before the partnership is established. If it is, then you will have to deal with "unqualified use" down the road whenever you sell or otherwise dispose of the property, and you don't need the headache that entails.
In your personal return you start working through the Rental & Royalty Income (SCH E) section of the program and on the 2nd or 3rd screen in select the box to indicate you converted it from rental property to personal use in 2017. Then press on "as if" you did not do that.
On the summary screen you will enter all rental income received and all rental expenses incurred only up to the date of conversion to personal use. You will NOT enter amounts for the entire year here.
Next, in the assets/depreciation section you must work through each individual asset listed (Of which the property itself will be listed there at an absolute minimum) and on the screen that asks if you stopped using the asset in 2017, click YES.
On the screen that shows you cost information, you need to write down on a separate peice of paper the name of the asset *exactly* as it appears in the program, the cost of the asset, and if listed, the cost of the land. You also need to write down any dates, such as the purchase date and/or in service date of the asset. You will need all of this information when you get to entering it in the 1065 return.
Then on the "special handling required?" screen, click YES. DO NOT CLICK NO or you will be asked for sales information. (You did not sell the property.)
When you get to the screen that shows you the depreciation amount for 2017, click the "details" button on that screen and write down everything presented. You will need all of that information for the partnership return.
