The transferee is a corporation and the house will be rented out. So, it will be "subject to the allowance for depreciation"
Also, marking 1099-S on the "Sale of home" in Turbotax will put it on Schedule D as a capital gain while based on the 26 U.S.C. § 1239 - U.S. Code, it is ordinary income:
" (a) Treatment of gain as ordinary income. --In the case of a sale or exchange of property, directly or indirectly, between related persons, any gain recognized to the transferor shall be treated as ordinary income if such property is, in the hands of the transferee, of a character which is subject to the allowance for depreciation provided in section 167."
