How to account for the full yr rental inc. and exp. when I transferred my rental property from LLC to myself mid year i.e. partial year under self and balance K1 income?

Carl responded as to removing the assets for the partnership return form 1065.  There should be no gain or loss at the partnership level with respect to the distribution of assets.

Partnership liquidating distributions are complicated.  There are a number of items that can impact determining any gain or loss at the member level.  This forum is not really suitable in discussing this issue in too much detail but I will provide some general guidance.  It may be in your best interest to discuss your situation with a tax professional in order to make sure your basis in the assets distributed are correct.

Each member is required to maintain a basis schedule of their investment in the LLC (outside basis).  This starts with your initial capital contribution and is adjusted annually by the applicable lines on the K-1. The general rule is that assets distributed to member's take a carryover basis and adjust your outside basis accordingly.

Liquidating distributions are treated differently.  It is possible to recognize a gain or loss upon a liquidating distribution only in cases where cash and inventory are distributed.  That is not the case here.  You have a distribution of depreciable property.

Where depreciable property is distributed in a liquidating distribution, the property will take a "substituted" basis.  This new basis computation is made more difficult if there are multiple properties or different assets distributed.  In general you need to look at the adjusted basis of the property distributed and compare it to your outside basis.  Most likely these two amounts will not be equal.  The regulations go into detail as to how to reconcile these two amounts and it will depend on whether there is a step-up or step-down in the substituted basis.

So by way of a simple example: If your outside basis in the LLC was $10,000 and the single asset distributed had an adjusted basis of $8,500, your substituted basis will now become the $10,000.  Your depreciable life will consist of the remaining life and method of the asset in the hands of the LLC for $8,500 and a new asset for the $1,500 step-up basis.

As noted above, this becomes more difficult when multiple assets or types of assets are distributed in a liquidating distribution.  The asset FMV will come into play as well as the adjusted basis of the assets.  

Once again, I would advise consulting with a tax professional to make sure your substituted basis determination is accurate.