Four family members received rental property from their father as a gift and thereafter established a multi-member LLC partnership to transfer the rental property into. The rental property has been depreciated during the duration of the LLC existence on the yearly tax return of the LLC Partnership Return. The members are now selling some of the rental property and I have been informed by the title company and one of the members that the property was never transferred to the LLC on the advise of their attorney. Also, the members now state that the property was inherited after their father passed away and they want to use the stepped up basis for the sale. Since an LLC can not depreciate property that it does not hold a title to and the sale of the property is in the names of the LLC members it must be handled on their personal returns. How do I handle this? My thoughts are to not claim anymore depreciation on the LLC return and claim the sale on their personal return using the adjusted depreciated basis as the cost.  Any suggestions are appreciated.