Carl
Level 15

Investors & landlords

In your case, you can't report this sale in the Rental Property (SCH E) section. You have to report it in the "Sale of Home (Gain or Loss) section instead. You will still be able to indicate business use, as well as recapture depreciation when reporting in that section. Just pay attention to the small print "on every screen" before you make any selections or enter any data.