OK, Since this was always at least partly your primary residence, you don’t have to worry about the “unqualified period” rules. But you do still need to pay recapture. For example, if you bought the home for $100,000, and made $20,000 of improvements, and took $15,000 of depreciation, then your adjusted cost basis would be $105,000. If you sell the home for $300,000, your gain would be $195,000. The first $15,000 which represents depreciation, is taxed as recapture. Since the remainder of the gain is less than the exclusion and you qualify for the exclusion, the gain is not taxable. I believe that recapture is taxed at your ordinary marginal rate up to a maximum of 25%, although the rules changed in 2018.
I haven’t entered this in TurboTax but I can suggest some people who may be able to help you. @Carl @DoninGA
