@LisaB "Cost Basis", is your cost. That is the purchase price plus cost of improvements. However, was the Fair Market Value of the property in 2012 (when it was converted to a rental) MORE or LESS than the Cost Basis at that time?
If it was LESS, it gets more complicated. It would help if you gave the approximate numbers for the (1) cost (purchase price plus cost of improvements), (2) Fair Market Value in 2012, (3) depreciation taken and (4) sales price (after selling expenses).
