Hi! I appreciate all the info on this site!
I have some challenging(to me at least) questions.

We had bought a house that had a garage/studio without cooking facility.

The house was rented out soon after purchase but the garage/studio was kept as our "vacation home" while we resided overseas.
Since 01/01/2009, the only time we didn't use it was because of my work.
We claimed Straight-Line depreciation while rented, no Additional.

I moved from overseas to a hotel in another state in 2010 because of my job.
My family took over the house for 1 year until we bought another house and moved. We later sold the old one at a small gain.

I know we qualify for a reduced maximum exclusion but doesn't "having no Non-qualified Use" count toward the "2 year use" requirement???
If not, I'd have to pay a lot for the depreciation recapture without the income to pay for it...

Also, in that case, do I need to file Form 4797 for 2011 even though rental ended in 2010?
Should the depreciation be included in 4797 line 2(f)? so (g)Gain or loss would be the total gain?
Or is Form 8949 PartII enough?
I think the depreciation is included in 8949 line 3(f) then the (g)adjustment would be the exclusion part of the gain in the negative or is it?

So confusing... Please help!