I'm using Turbotax premier and sold my primary residence last year (which was previously used as a rental). In one screen, it asks for the depreciation previously taken on a home to calculate the adjusted cost basis. In another screen, it asks for depreciation taken after 5/6/1997 for purposes of calculating taxable ordinary income and recapturing the depreciation. In my instance, the post-5/6/1997 amount is significantly less than the total amount that was taken. I'm being told by a tax expert that depreciation taken regardless of the year is taxable and must be recaptured when a home is sold. Is that correct? If so, why does TurboTax ask for it to be separated out?
