I think I understand why I was little confused.
When I click on the asset and enter in the Disposition Information I am presented with a screen that says "Special Handling Required?" and it tells me to select if Yes if any of the conditions apply. One of them describes my situations "This asset was a rental, a home office, or a home office improvement within a home." I believe I am correct to click Yes as it is a bedroom in a 2 bedroom condo and it results with me being presented with a screen that says "Depreciation Deduction Amount" and it tells me it will be transfer the an amount to the correct form (I rented it for the first 3 months of 2022). That is all I am asked to do. I have no other screens or anything else to answer after doing that.
I went back and clicked No on that screen and I think I see all the screens being mentioned above, but those don't seem to apply to be as this rental was within my primary residence
Looking over their documentation since I clicked Yes for special handling I am supposed to enter all that information on the Sale of Home screen. I went over there and put my adjusted cost basis as $170k (187k cost - 17k dep) as well as entered the $17k depreciation on the Depreciation After May 6, 1997 screen. This resulted in saying Part of Your Gain is Tax Free and I only have a taxable gain on $17k of the sale.
Please let me know if any part of this sounds incorrect, but based on the documentation this made the most sense.
