@natalierose28 , unless you are quite familiar with and ready to use a higher version like Windows download/CD Home and Business, you are probably safer to use a tax professional.
What you will need to do :
(a) first tell TurboTax that you have sole an income property -- note this is in addition to Schedule-E where you are recognizing the rental income/ expenses/ depreciation etc.
(b) while doing the 4797 you have to make sure that you include any suspended ,losses associated with Schedule-E.
(c) After the gain has been computed, gain upto accumulated depreciation would show up on your 1040 as ordinary income. The rest of the gain would show up on Schedule D .
(d) On Schedule-D you can now exclude 250,000 ( 500,000 for joint filing ) -- assuming you have met the 2 year ownership plus 730 days of primary use ( by both if joint ).
It is not straight forward. But the savings is worth it.
Is there more I can do for you
