My client sold a rental property he has owned and depreciated since 2008.  My question is, do I have to reduce the cost basis by the depreciation he has taken on the unit and improvements for the last 11 years?  I believe he does but I am trying to find out if there are any deferrals of gain that are available to him.  I assume the gain on the sale is all ordinary income.  I believe I need to complete form 4797. Is this correct?

Thank you for your help?

Joe Kane