Thank you for your reply. I'm beginning to think there might be something wrong with TurboTax. I went back in and retraced my steps per your instructions and after thinking the problem was resolved, it once again is telling me that I owe tax on the gain which did transfer to the 1040. Additionally, I never see the reasons for sale question or the Depreciation after May 6, 1997 question. My wife and I have bought and sold real estate for over 20 years and I've never run in to this problem with TurboTax before. Thanks again for your detailed response.
