Bonus Depreciation - Spouses quitclaim rentals to MMLLC

I need a bit of a sanity check here.

Background: Two spouses own residential real estate 50/50. They create an MMLLC (1065 required), they own 50/50, and contribute the property to the MMLLC on 12/1 via quitclaim deed. One of the spouses is a R/E Professional.

Two of the properties were purchased in 2022 with cost seg's performed.

Plan: Use 100% bonus depreciate on eligible property on their individual taxes and retire the assets as of 12/1. Carryover adjusted basis to the Partnership return. No gain on contribution of the property via 721.

When I mark the assets retired on their 1040 in ProConnect on 12/1, it doesn't allow special depreciation. Based on review of the regs, I didn't think Bonus is limited in year 1, but I can't override it in anyway.

Am I wrong in my approach here? If not, does anyone know a workaround in ProConnect?

Thanks in advance for your help.

When I mark the assets retired on their 1040 in ProConnect on 12/1

You don't want to do this. The asset has not been "retired". In our software where there is a split year and deprec continues on the 1065 you have to manually calculate the split of any regular MACRS depreciation and override on both the 1040 and 1065.

When I mark the assets retired on their 1040 in ProConnect on 12/1

You don't want to do this. The asset has not been "retired". In our software where there is a split year and deprec continues on the 1065 you have to manually calculate the split of any regular MACRS depreciation and override on both the 1040 and 1065.

Thank you for your help!

So you don't mark the assets disposed of? Do you in the following year on their 1040 or just remove them from ProConnect?

We just delete the Sch E property (depreciation & all) from the 1040 the next year.