TaxGuyBill:

Thanks for your reply! Regardless of the debate whether Vacation Home carryover depreciation should or should be allowed on sale, the accumulated depreciation should be adjusted when the preparer treats it as not allowed, but this is not the case in the software, which is incorrect. 

So I infer that the software does not have the consideration that you think it has, it simply extracts the depreciation value from the depreciation and amortization schedule.