I'm not sure if the thread below will help but you might want to read through it and see for yourself.
https://ttlc.intuit.com/community/business-taxes/discussion/i-have-passive-activity-losses-from-prio...
Regardless, you need to enter this transaction as the sale of a home so that you get the 2-out-of-5 exclusion. You will be prompted to enter an amount for the accumulated depreciation as well as the time period for which the property was used as a rental.
The primary issue now is that you need to enter the suspended losses and then ensure that those losses get released to offset other income. Unfortunately, the program does not make that an easy task when you have converted rental property to personal use in a distant tax year.
