When I review the worksheet line 35-- What I can see is that it is taking the full gain, reducing it for the depreciation and the portion of the nonqualified gain. The result removes the depreciation that must be recaptured from the rest of the gain before calculating the allowable exclusion.
The field is used by different areas of the tax return such as if your rental was still active in the year it was sold as example. I can't be certain of the background details, however this seems logical to me why you may have to enter the depreciation in the worksheet even though you did enter it through your step by step process.
Thank you for your kind words.
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