In the end, you will show two properties on your SCH E. One for the final K-1, and one for you with 100% ownership.
For the final K-1 when you enter it on your personal tax return, you'll report it "as if" nothing changed, other than the partnership disposed of the LLC.
When you enter the property on SCH E in your personal tax return, you'll reduce the cost basis of the structure by the total amount of depreciation already taken on the property. Then depreciation will start over from the new cost basis, for the next 27.5 years.
Note that you will reduce the cost basis of the structure only, not the land. So in TTX:
COST: This will be reduced by the amount of depreciation already taken on the property.
COST OF LAND: this value will not change.
When completed, page 1 of the SCH E will show what is considered a "new" rental property with the reduced cost basis. Page 2 of the SCH E will have the information from the final K-1.
