Complex Rental Property Sale

[TillerF15]

We have had a rental property for 20+ years. I'm retired military and we were moved overseas while owning the house. We rented the property for many years and have a large passive carryover as well as depreciation. Since we were military, we could use the additional years for the qualifying 2 years living in house. My question is:

1. How do I put in the $500,000 capitol gain exemption for the sale of our house.

2. How do I then put in the large passive carryover

3. How do I put in the depreciation and what numbers do I use for each and in which section is each entered.

Please use the following numbers for simplicity (not real numbers.)

Home sale: $1,000,000

Passive carryover: $200,000

Cost basis: $400,000

Depreciation: $150,000

Exemption: $500,000 (two of us)

Thanks!

[AmeliesUncle]

Was it a rental in 2024?

If so, the last time I checked it is all handled in the rental section, when you say it sold and then you go through the "asset" for depreciation and mark it is sold again (in most cases, say "no" to the Special Handling screen).

[TillerF15]

It was not rented in 2024, but was sold in April 2024. So, how do I take the $500K for primary residence?