If you have reported this Rental Property in the past and enter the date of the sale, TurboTax should calculate the current year depreciation properly. We advise against overriding calculated values that can cause other problems with your return.
Review your entries under Rental Properties >> Property Profile and Assets/Depreciation to be sure you entered the correct basis at conversion. Even if you have not reported this Rental Property in TurboTax before, you should complete these entries first.
When you have confirmed your entries for the property, follow AmeliesUncle's advice and report that the property was converted to personal use. Be sure to answer all questions that relate to taking the asset out of service, including Special Handling Required.
Although this doesn't follow the facts, reporting the property as converted releases the asset and provides the accumulated depreciation amount. You can now report the sale under Less Common Income >> Sale of Home. In this section, you can use the original cost basis to calculate the gain and report the depreciation you have taken while it was rented, while receiving the benefit of any personal residence exclusion.
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