This is a two-step process, and Cathi's answer is not on inclusive of the more finite details you need to know.
Step 1 - Dispose of the property on your personal tax return.
Step 2 - Show the acquisition of the property by the partnership.
For now, my response will "ONLY" deal with the correct and proper disposition of the property off of your personal tax return, in a way that will allow for it's non-monetary transfer into the 1065 partnership return. I am assume that you did ***NOT*** own 100% of the property when reporting it on your personal return, meaning that all partners will need to do this, assuming all partners are using TurboTax.
Start working through your rental property *AS IF* nothing is changing. About 2-3 screens in select the checkbox for "I sold or otherwise disposed of this property in 2017" and keep working things through "as if" nothing has changed.
When you get to it, you will report all rental income received up to the date of disposition/transfer.
You will report all rental expenses incurred up to the date of disposition/granfer
For the assets, that section is now titled Sale of Assets/Disposition. Elect to update/edit that section. You must do the below for each and every asset listed individually.
Work through the asset and select YES to indicate that you did stop using the asset in 2017.
When you get to the "Special Handling Required?" screen, you must click YES. If you click no, then you are telling the program that you sold the property for money. So you MUST click YES on that screen. Then continue working the asset though. You will not be asked for any sales information. You MUST do this for each individual asset listed, one at a time. Make sure your disposition date is the same for all assets. This date must also match excactly, the disposition date of the owner property owners also.
At this point, we're ready to start entering the property in the TurboTax Business program. I assume you will be filing a 1065 Partnership return since this is a multi-member LLC. Let me know when you're ready to continue.
Do note that you can NOT file *any* tax return at this point, because your personal tax return is not done until you've entered the information from the K-1 that the partnership will issue to each owner.
