Sale of primary residence from rental taxable?

[nbracamonte]

I purchased primary residence in September of 2010 and lived until December 2014.   Rented to brother from Jan 2015 to Sept 2017.  Seems like there is no gain or loss on this sale as we meet all IRS criteria.  How is this entered in Turbo Tax?  Turbo Tax wants to take depreciation and calculate a gain.  Is this correct?

[Hal_Al · Accepted solution]

Since you lived in the home two out of the five years prior to sale, you qualify for the home sale exclusion. However, the home sale exclusion does not include depreciation recapture. So, yes, a portion of your capital gain will be taxed. Depreciation recapture is taxed as ordinary income, not at capital gains rates. 

[nbracamonte]

Would you happen to know the difference between the amounts I would enter for depreciation vs AMT depreciation?

[Hal_Al]

For most people there is no difference. TurboTax will calculate the alternate and prepopulate the box, if you need it.