Carl
Level 15

Get your taxes done using TurboTax

Recaptured depreciation is taxable no matter what you do. There is no way to get out of that. Even if you qualify to exclude the entire gain from taxation (and you won't), 100% of the recaptured depreciation will be taxed in the tax year of the sale.

As to what portion of your gain will be excluded, there's no way to know until you enter all the data and let the program "do the math". Since at this time the IRS has not yet released the electronic versions of the 4562 depreciation reports, the program may not be able to do the math correctly at this time. I can't be sure since I don't know "for a fact" that reporting the sale where I told you to report it, matters if the 4562 is in the program or not. I would expect it not to matter at this point. But I wouldn't be willing to place a bet on it.