If you used TurboTax for all the years you rented it, then the only possible way to not have taken depreciation is if you purposefully and intentionally deleted the asset or changed the values in the assets/depreciation section every single year you reported your rental income/expenses with TurboTax. I'm not sure how to interpret your post and first response at this point. But I get the impression that you did *in fact* depreciate the property every year you rented it as required by law. So that's what I'm going to assume unless you clarify otherwise. Now for reporting the sale and recapturing depreciation, where you report that sale in TurboTax depends on the last occupant to move out prior to the closing on the sale. Was a paying renter the last to move out? Or was it your primary residence prior to the sale and you were the last to move out?
", isn't that a loss?"
No. It's a gain. Depreciation reduces your cost basis. So if you paid $50K for the house 14 years ago and have $15K of depreciation, it's adjusted cost basis is $35K. Then when you sold it in 2018 for $50 you have a $15K taxable gain. More than likely you won't pay taxes on the entire gain, because you probably have carry over losses that you get to realize in the year you sold, which will offset some of that gain. But how you deal with this, depends on who moved out of the house last, prior to the sale.
