purchased in July 2014, we lived in the property from July 2014 until October 2018.
You don't say what the property was used for after October of 2018. Was it rental property you rented out maybe?
In a nutshell, your cost basis is what you originally paid for the property, plus the cost of any property improvements you paid for after your acquisition of the property. From that total you subtract all depreciation taken on the property. If you used the property for any type of business use (rental, claimed a home office, etc) then you are required to recapture the depreciation taken, or the amount of depreciation you were required to take if you in fact, did not depreciate the property as required.
If the property is still classified as a rental property at the time of the sale, then you report the sale in the SCH E section of the program and the program will take care of the depreciation recapture for you, automatically in the background.
