capital gains does not include the depreciation recapture and it's not "purchase price", it's "cost basis" which would reflect the reduction in cost basis due to depreciation.
Capital gains = (Sale price - closing costs) - (cost basis including improvements)
that cost basis including the improvements would have been depreciated during the time period you rented the property.
re-read my post above as I explained which forms appear to be required at above or below $500,000
