this should be simple..
bought house in 1989 for 101500
lived in it until june 2010
started renting, june 2010
stopped renting august 2012
sold december 31 2012
claimed depreciation the whole time, filed sched e, etc
now i finally need to file 2012 taxes, late
i think i am entitled to escape gain on the house sale, since i lived in it for 21 years before selling
and i know i am supposed to claim depreciation as income somewhere
but do i have to fill out form 4797?
i already have to do sched D for other cap gains
but the 4797 is killing me
it seems like it is not letting me escape the gain on the house sale
do i have to pretend like i sold it to myself when i started renting, then sold it from the rental business?
seems like this should be easier...