You are correct. The following quotations are from an Intuit ProConnect help website: Reporting Depreciation on Sale of Your Home Worksheet
"If the property was not linked to an Asset Entry Worksheet go to the Home Sale Worksheet Part IV - Exclusion and Taxable Gain, and enter the amount of depreciation for periods after 5/6/1997. Enter any depreciation allowed or allowable as a deduction for periods after May 6, 1997. This portion of the gain cannot be excluded.
According to IRS Publication 523, the depreciation recapture (depreciation taken after May 6, 1997) is only reported if there is a gain on the sale. The depreciation recapture is reported on Form 8949 and Schedule D but not Form 4797.
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