It is possible the program has changed since I last checked, but this is how it should be done (at least how it was done):
- Go into the rental section and in the first introductory part, indicate it was sold.
- Then go into EACH asset/depreciation item and go through it and check another box it was sold. When you get to the "Special Handling" screen, in most cases you will say "No". Then it will ask for the sales information and one of those questions will ask if it was ever your Main Home. Answer "yest" to the Main Home questions and all of the followup questions, and it should report it correctly.
You will still pay tax on the gain due to the depreciation that you eligible to take.
