It is not a capital asset, such as your personal home would be. You converted it to business property.
IRS Topic 409:
Almost everything you own and use for personal or investment purposes is a capital asset. Examples include a home, personal-use items like household furnishings, and stocks or bonds held as investments.
If you sold the property for more than what you paid for it, there will be a capital gain tax treatment on that portion. The depreciation recapture is ordinary income.
You have gains that have to be reported on the Federal and Georgia returns.
[Edited 3/17/2021|10:58 AM EST]
