I have entered all the required information related to sale of long term rental residential property. On form 4797, I show a gain on the sale of the house (sales price minus adjusted book value). From everything I read, I anticipated some depreciation recovery showing up on line 31 of Form 4797. I entered the sales information for the land and the house in the depreciation section of the rental income section, anticipating all necessary forms would be completed but now I am not so sure. Does anyone have any insights on how this works?
