if it was transferred to a single member LLC, you do nothing different for your 1040. you continue reporting on schedule E.
not a lawyer but if both H&W are on the title it would seem that a single member LLC is not possible because that can have only one owner. if you are not in a community property (CP) state a multimember LLC - even H &W must file a partnership return. if you live in a CP state, continue reporting on schedule E.
however, if the property is transferred to an S-Corp, generally unadvisable, mortgages don't count towards basis which can subject losses to the at-risk limitation. see a tax professional.
