Hal_Al
Level 15

Deductions & credits

It's the sale of a 2nd home. The business use was incidental. If you filed a Schedule E for tax years 2006-2008 and claimed depreciation and/or a loss**  on Schedule E, then you will have to claim the "depreciation recapture".  Depreciation recapture is a special category long term capital gain, taxed at ordinary income rates.

When you enter the sale, as the sale of a 2nd home, TurboTax will ask about prior depreciation. To enter the sale, type> 1099-S <in the find box.

** If you did not claim depreciation, but claimed a rental loss on Schedule E, you are still required to recapture the depreciation "allowable". 

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