Moving property from S-Corp to LLC

[Kevin Schick]

I have two entities:
1. Single Member LLC for buy&hold long-term.
2. S-Corp 100% Shareholder for buy&sell short-term.

I am thinking of transferring one of my inital 2004 S-Corp properties that I ended having as a long-term rental over into my LLC.

How would this be handled bookkeeping wise.
1. Transfer at cost from one entity to another.
2. Determine FMV and transfer with gain from S-Corp.
For #2 would the gain just be the depreciation recapture?

Thanks, BMR