Rental (owned by 3 people) transferred to an LLC

[G2R]

Family owns a rental property (2 brothers and sister) and transferred their rental property into an LLC, taxed as a partnership, mid year.  A few questions:

1. Does the LLC basically steps into the shoes the partners wore prior and continue on the same depreciation schedule? If so, I'm struggling to make this work in ATX without overriding because the LLC transfer occurred mid-year.  The 1065 return wants to give them full year depreciation, but it should only show 1/2 year.  I'm tempted to just let it ride and take zero depreciation on the Sch E for the 1st 6 months before it became an LLC, assuming my assumption on procedure is right. 
2. Are their any tax implications on the personal return?  They didn't sell the property.  It's all the same owners.  So I don't see why there would be but I just want to confirm.  Should I note the transfer somewhere on the return and/or in ATX so the IRS doesn't just see this large asset vanish without explanation?  
3. When I build the balance sheet of the 1065, do I list the property and improvements at their original cost and accumulated depreciation taken thus far?  If yes, then I assume the capital accounts of the partners are the depreciated basis of the property right?  

TIAFYH!

[DANRVAN]

1 hour ago, G2R said:

overriding because the LLC transfer occurred mid-year.

To be correct you should override to show 1/2 year for 1065 and 1/2 year on schedule E.

 

1 hour ago, G2R said:

Does the LLC basically steps into the shoes the partners wore prior and continue on the same depreciation schedule?

Yes.

 

1 hour ago, G2R said:

IRS doesn't just see this large asset vanish without explanation?  

IRS is not tracking it!

 

1 hour ago, G2R said:

capital accounts of the partners are the depreciated basis of the property

Partners basis is the basis of assets contributed.

1 hour ago, G2R said:

original cost and accumulated depreciation taken

As of date of contribution to partnership.