I purchase my primary residence for $295000 and lived in it just under 4 years. At that point I converted it to a rental property with a FMV of $239000 at that point, basing my yearly depreciation. Said property was sold last year at a purchase price of $339000. As i understand from the tax code, you are exempt of paying taxes on the gain if the gain is less than $500000 for married filing jointly, but I would be responsible for the depreciation recapture. The trouble im having is that when I complete the interviews, Turbo Tax is generating a capital gain on the sale.
I have been reading https://ttlc.intuit.com/questions/2936029 but this example the property sold for less than the original purchase price which is not my case.
Any help would be appreciated.
