I am trying to research this topic and see if it applies to my situation - in doing so I came across the following entry from the IRS FAQ web site which closely matches my case.
https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/prope...
Briefly, I bought a property in 2010 and moved out in 12/2015 to take another job in another state( more than 50 miles from my current home) - in 02/2016 I found a tenant and rented out the property - we didn't know if we would like living in the new state so just wanted to hold on to our property just in case - fast forward to 01/2018 and I asked my tenant to move out and put the property up for sale in 02/2018 - the property sold at a gain and after doing some research I came to the conclusion that all I owe is the depreciation recapture tax for the years I had the property as a rental( 02/2016 through 01/2018). Do I also need to file a form 4797 ? How does Turbo Tax handle this kind of scenario ?
Thanks in advance.
