First the depreciation taken or allowed must be recaptured even if you can exclude the cap gain on the sale. If you have not been taking the required depreciation then RUN to a professional tax pro when you file your next return so that the form 3115 can be properly filed with the return.
Read up starting on page 17 of the PUB 3 ( third book you always should have on your nite stand) to see if you qualify for the extended exclusion period of up to 10 years. https://www.irs.gov/pub/irs-pdf/p3.pdf
In the TT program you will NOT sell the rental in the rental asset section ... you will simply indicate you converted the property back to personal use (to stop the depreciation) and then report the sale later in the program ...
To report the sale of a primary personal residence -
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Less Common Income
- On Sale of Home (gain or loss), click the start or update button
