Depreciation schedules are not "moved" from one type of reporting to another. (SCH E to SCH C, or vice-versa).
Residential Rental Property reported on SCH E is a totally and completely separate business from Residential Rental property reported on SCH C. You have to "close" the SCH E business entirely, and then "open" a completely new SCH C business.
All assets (including the property itself) on SCH E are converted to personal use on a given date. The date of conversion needs to be identical for all assets. Once the conversion is complete, you then need the total amounts of depreciation taken on those assets. The total will be the sum of the prior year's of depreciation, and the current year's depreciation up to the date of conversion.
When you enter the assets on the SCH C, you must reduce your cost basis in those assets by the amount of depreciation already taken. The "in service" date for the asset on the SCH C *MUST* be at least one day *AFTER* you converted it to personal use on the SCH E. Then the depreciation process starts all over from year one.
Passive rental assets on SCH E are depreciated over 27.5 years.
Your rental assets on the SCH C are required to be depreciated over 40 years. This is why you can't just transfer assets from one business type to the other and just continue depreciation from where you left off.
Take note that anything being amortized on the SCH E (such as the points) are not transferred. That's because when you convert the asset to personal use, the remaining amortized amount to be deducted, is fully deductible in the tax year of the conversion.
Finally, make sure you can support the change from reporting rental property on SCH E, to SCH C. It's a pretty good bet that you will be audited on it, anywhere from 24-36 months after you file the tax return reporting this change.
