Why $47,000 in Capital gains? Paid $218,500 in 1994; sold it for $455,000 in 2017. Filing jointly. For 3 years, we rented it but lived there for 3 years afterwards.

[Phillip1 · Accepted solution]

The depreciation must be recaptured from the period when the home was used as a rental property, that amount must be reported as gain regardless of whether you qualify for the primary residence home sale exclusion.