Due to the timing (conversion to a rental in 2008), I want to emphasize that last point that jtax made.
If the Fair Market Value in 2008 (when it was converted to a rental) was LESS than the Basis at that time (original purchase price plus cost of improvements before that time), it gets more complicated, and TurboTax does NOT support some of those scenarios.
You may want to go to a tax professional this year.
