Q. Is there any conclusion on which is appropriate?
A. Yes and no. Either way is "correct" if it gets the right results. I recommend the home sale entry because it's simpler (as you have found out). But I have noticed that most experts, in this forum recommend the rental section
You say "When I enter the info under personal home sale, our capital gains are excluded". That part is correct. If it also treated the depreciation recapture as taxable, you should be good. The fact that TurboTax lets you do it there is your assurance that it's appropriate.
