You're on the right track. For a Section 721 contribution, marking the properties as disposed with a $0 sales price (or exactly the adjusted basis) on the individual side is the standard workaround in ProSeries to avoid triggering a taxable gain. You then just carry over the historical cost and accumulated depreciation directly to the new 1065 balance sheet and depreciation schedules.

Since you are already doing the heavy lifting of moving these assets and setting up new depreciation schedules for the partnership, this is actually the perfect time to review their depreciation history.

If these properties have only ever used straight-line depreciation, your client might be sitting on a massive amount of unclaimed accelerated depreciation. Whether these are smaller rentals or larger 1-200 unit multifamily buildings, doing a look-back study (Section 481(a) adjustment) as they transition to the 1065 is a fantastic value-add you can bring to the table.

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Best of luck with the new 1065 setup!