You can only exclude up to $250,000 of gain on your principal residence, not a second residence used as a rental.
Make the entries to account for the sale transaction in the Rental section of TurboTax. Don't enter the transaction a second time in another section, or the sale will be reported twice.
Please see this TurboTax help article for guidance on reporting the sale of a rental. This tax tips article on managing assets also has useful information.
When you report in the Rental section that the property was sold, TurboTax will ask questions to gather the needed information so that it will properly calculate the gain on the sale and the recapture of depreciation. You do report depreciation for the portion of the year that includes the sale.
The portion of the gain that represents the recapture of depreciation will be shown as ordinary income on your return, and the rest of the gain is capital gain. This is why you will see amounts on different forms in your return.
See this IRS webpage for answers to frequently asked questions about the sale of rental property.
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