Converted Primary residence to rental and back, then sold (gains qualify for taxation)... how do i correctly deduct the depreciated assets from my gains?

[tyler-g-haney]

Quick summary: Purchased home in ID '07, put $$ into it, convert to rental 04/12, moved to OH, bought OH home '13, sold '16, moved back ID, convert rental to primary, sold 4/17. help?

Extra Detail: I purchased the home when I was single, upgraded it to the tune of ~25k+.  Converted it to a rental and paid the appropriate taxes.  I moved to Ohio and got married.  I then bought a home there in 2013, remodeled it, sold it for a profit in 2016 when I moved back to Idaho and converted the rental back into a 'stepping stone' primary residence.  I used turbotax to convert the rental back into a primary, but now that we sold it in 2017, i'm not sure how to recoup the remaining depreciation that was left.  I have to pay taxes on the gains since I both had the sale on the ohio property within too short of a timeline AND I didn't have the Idaho home be a primary residence for 2 years.  How do I make sure I'm not paying too much taxes on the profit of the primary turned rental turned primary?   

I converted rental to primary following this thread last year:

https://ttlc.intuit.com/questions/3601066-converting-rental-property-to-primary-residence?jump_to=co...

[Hal_Al]

It's tricky, you may want to have you taxes done professionally this year.

The term is "recapture" depreciation, not recoup. "Recoup" sounds like you expect to get a tax benefit. In actuality, recapture means you pay tax on the depreciation you claimed in the past, when you sell it. The entire capital gain is taxable. As you know, you not get any credit for having used it as a residence.

Add the $25,000 upgrades to your original cost basis.

Since you are not filing a Schedule E (rental income); In TurboTax enter at:

 In TurboTax, enter at:

- Federal Taxes tab

 - Wages & Income

Scroll down to:

- Less Common Business situations

  - Sale of Business property - click start