You owned half a house. You should have set up the rental using one half of all amounts. One option to get things corrected would be to file amended returns for 2017, 2018, and 2019. Then you could properly report the sale and gain on your 2020 tax return. Another option would be to file Form 3115, Application for Change in Accounting Method. This would allow you make the necessary corrections retroactively. TurboTax does not support Form 3115, so you would not be able to file using TurboTax and file Form 3115. I recommend you seek the help of a local tax professional in your area.
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