When the business use percentage varies each year, TurboTax cannot automatically calculate the disposition of an asset. You will need to make manual adjustments to the return.
However, if the rental property was rented 100% for the last four years (the entire time it was a rental property), then the business use percentage did not change, and you can answer no to this question.
In order to take the home sale exclusion for your personal residence, you need to actually live in your home for two of the last five years. If you did, then you need to allocate your gain to personal use versus rental use to properly determine your eligible exclusion amount. Post another question on AXC if you need help with this.
