In my case the other case on Pg.11 applies: Space formerly used for business or rental. The property was first used completely as a rental and then I moved into it mid-year requiring a fractional calculation. I took depreciation at the time it was being reported as a rental.
Worksheet 3 (Pub 523) Sec.B Step 1 asks for Line 7 in worksheet 2 which already subtracted the depreciation. So the fractional calculation is done on the gain minus the depreciation. TT doesn't do that. Is the IRS worksheet wrong ?
