This is when working as a lonely sole-proprietor can get frustrating.....

I've been trying to follow the instructions for re-capturing depreciation on an in-home office for the sale of a home, but it seems like I'm making it more complicated than it should be.  Anybody have any "tried and true" system that they use?

I allocated the sales price on the depreciation schedule so that the gain is ONLY the accumulated depreciation. Then I reduced the sales price on the disposition entry form by that amount.

I also reduced the basis on the disposition entry by the basis on the 4797 (before depreciation since the depreciation is recaptured on the other form).

The recaptured depreciation is showing up on the Schedule D as long term capital gain. Isn't it supposed to be recaptured as ordinary income?

BTW: The gain is well above the taxpayers' $500,000 exclusion.