Tax question — sale of rental property

Sold a rental house last year. Bought it as primary home over a decade ago, then converted to rental a few years later when I moved.

Using H&R Block tax software this year, and it appears to be figuring income tax on the profit rather than capital gains.

Any insight is appreciated. H&R’s chat “help” was no help at all. I have always expected cap gains tax on the sale of a property…income tax will hurt very much, to the tune of sending several thousand dollars to Uncle Sam for him to spend oh so wisely.

As I recall, the recaptured Depreciation is treated as Ordinary Income. I used TurboTax and it figured it out for me… but as an example… you bought the property for 100K, depreciated 40K and sold it for 150K.

You would have 50K in CapGains and 40K in Ordinary income.
This makes sense as the depreciation was a deduction from Ordinary Income.

I never converted from Owner Occupoied to a Rental… not sure if that makes a difference,

Thanks. I’ll probably consult Turbo Tax. Becoming less & less impressed w/H&R Block as time goes on.

Having dealt with them, this is the least surprising sentence I’ve read this year.

BTW, I filled out my taxes early and already got my refunds. The other day, H&R Block emailed to tell me the IRS is holding my refund for a while. The refund in my bank account.