We purchased a home in IL in June 2004 - we used it as our primary residence until Nov 2012. From Nov 2012-Jan 3 2014 we had renters and sold the home on Jan 3 2014. The original purchase price of the home was $324,500, the home was sold in 2014 for $294,500 and we had expenses around $29k (taxes, commission, credits, fees, surveys, attorney, interest, etc).

How do I best claim the property (3 days of income $203) vs the losses/expenses incurred. I believe I will need 4797, but how do I determine cost basis and depreciation?

I claimed the rental income in 2012 and 2013 on the 1040E and we currently live in TX - does this make a difference at all to the taxes?

Thanks in advance for any assistance!