How do I get sale of personal residence with prior depreciation onto 4797?
I am using the Form 1040 disposition screen (screen 17) to show sale of personal residence (converted back from rental property to personal residence for past 3 years to meet the 2 out of 5 rule). For some reason the program is putting the recapture of depreciation taken on the home as capital gain -- shouldn't it be ordinary and reported on 4797? The rest of the gain would be excluded under section 121. I called support for 45 minutes and got no where. They even remoted into my computer and still could not figure out what to tell me -- all I want is 4797 ordinary gain for the depreciation. Any input ideas out there for Lacerte users?