The sale of the property would be reported on a Form 4797 and that is where the depreciation recapture would be reflected. The gain on sale would first be applied to the depreciation taken and as such would be reported as ordinary income (capped at 25% federal tax) and the rest would be capital gain income. Hopefully you will be married by then and you can file a joint tax return and just complete one Form 4797. Otherwise, you would each have to file the Form 4797 showing your share of the sales proceeds, cost basis and depreciation allowable, based on what you reported on your tax returns in previous years.
Form 3115 would only be necessary if you didn't claim allowable depreciation in previous years and you wanted to correct that in the current year.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
