Thank you for your response, ColeenD3. Is simply subtracting the depreciation from the basis sufficient, or do I need to enter the depreciation somewhere else to recapture it? The only way I can figure to do it is to figure the percentage of the sale etc that relates to the rental period (3% of the time we owned the house), enter that as a sale of business property and recapture the depreciation in that transaction. Then the rest of the sale etc will be entered as the sale of investment property. Am I making this harder than it should be?
