No, the above-quoted answer is not correct.
That's because I didn't put it in proper context. So I understand why it would be wrong. Especially in this thread. To clarify:
Your cost basis *for depreciation* is the lesser of what you paid for it, or it's FMV at the time it was placed in service.
Your cost basis for the sale, is what you paid for it.
Some would call it your adjusted cost basis (and they would not be wrong), because you subtract depreciation from what you paid for it. However, entering that as your cost basis can have the potential for the numbers to come out wrong in the TTX program. That's because recaptured depreciation is taxed at the ordinary income tax rate, while the gain on the sale is taxed at the capital gains tax rate. So the program will ask you for depreciation separately, so it can correctly figure what gets taxed at what rate.
