My client sold their rental home on 8/3/20. However, they DID meet the tests to qualify for the Primary Home exclusion.

I thought that they would only have to recapture the depreciation previously taken/allowed since converted to rental, on 10/1/17. And my understanding is that the deprec recapture is as ORDINARY INCOME. But the program is showing a capital gain.

I think there may be some box somewhere that I didn't check correctly.