I have a rental property that I have had for 18 years. In April of 2018 I took on a partner to redevelop the property and we formed a new LLC and I transferred the property to that LLC.
Couple of things here that matter big time.
For starters, on your personal return you will show the property as converted to personal use one day before it was transferred to the LLC. Then you will print out the IRS Form 4562 titled "Amortization and Depreciation Report" as you will need it.
Since you have a multi-member LLC that means the rental property will be reported on SCH E of the 1065 return. You'll be showing it as a capital contribution to the LLC. However, the acquisition dates, in service dates, and everything will be identical to what is on the 4562 from your personal return. For the "prior depreciation already taken" you have to add together the amounts in the "prior years depr" column and the "current year depr" column on the 4562 and enter that total amount. Then the program can correctly figure the remaining depreciation for the rest of the 2018 tax year.
Next, if there's a mortgage on this property then you need to have the lender's permission to transfer ownership of the property from you, to your multi-member LLC. Without that permission you are in violation of your loan agreement and that makes the remaining mortgage balance due immediately. Otherwise the lender can *and most likely will* foreclose on the property for your violation of the loan agreement.
Next, you need to update the rental dwelling insurance policy to show the new owner. Otherwise if there's a claim, the insurance company can quite easily get out of paying such claim and there isn't a thing you can do about it. Additionally, without a valid insurance policy that's another violation of your mortgage loan agreement.
For 2018 I will have income and expenses for the property through April and then get a K1 from the new entity for the rest of the year. In TurboTax do I add the new LLC as a new property or is that business dealt with elsewhere?
I covered the basics of this above. Overall if you don't feel confident in doing this right I would suggest you seek professional help for at least the 2018 tax year. Doing things wrong wil be *EXPENSIVE* and will make the cost of professional help seem like a pittance in comparison. If your state also taxes personal income, then you can double your costs for doing things wrong that first year.
One final note of warning here. The one ship that is guaranteed to almost never make it to port, is a partnership. Sail at your own risk and peril.
