If it sold at a gain, C.
It is confusing, but for real estate, report 100% for the rental/business portion, and only report it in the rental section.
I think after entering the sales information, it will ask if it was previously your Main Home, then you will answer those followup questions to determine if you qualify for the $250,000/$500,000 exclusion. I don't know all of your circumstances, but if you bought the home in 2021 and only lived in it in 2021, you don't seem to qualify for the exclusion.
Even *IF* you qualify for the exclusion, you there will be taxable gain due to the depreciation that you were eligible to take (that part does not qualify for be excluded).
