Your correctly entered the lower of FMV or basis for depreciation. The reality for the sale is: your basis of $304k minus depreciation claimed for 7 years, let's just say $54k for illustration purposes for a rough basis of $286k.
The house was a rental for 7 years. It was not your main home in the last 2 out of 5 years. It was pure rental. Sold $265k
Profit is a loss or small gain. $286 k basis minus sale of $265 is a loss of $21k.
Be sure to go through and dispose of all the assets you have listed. Everything else was sold for zero to go with the house. So, if you were depreciating a refrigerator and roof, that loss adds in as well.
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