You will have to reclaim the depreciation on the residence and the amount of depreciation that you took will be taxed as regular income. The good news is that TurboTax is set up to handle this.
When you're ready scroll down in the wages and income section of TurboTax to 'Less Common Income' and click start next to 'Sale of Home'. The wizard will ask a bunch of questions in order to properly set up the sale. After you have entered the details about the sale of the house and the purchase of it the system will ask if you ever used the home for anything other than a residence. You will answer 'yes' and enter the number of days that the home was a rental. Then you will enter the total depreciation that you took on the home during that period and the software will do the rest.
The only other thing for you is those rental furnishings. If you expensed those at the time that you were renting the house or depreciated them and then sold them (even as part of the home sale) then you have a taxable gain on the sale.
If they were depreciated or expensed and you included them as part of the sale of the house just add the total amount that you took for the expense to the total depreciation and you'll be all set. If you sold them separately then you will need to enter the amount that you received as regular income in your return.
If you gave or threw them away because they were at the end of their useful life then you can forget about the furnishings.
@jarvfam01
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