Do you want to do it the way the IRS Instructions tell you or do you want to do it the way ProSeries (and TurboTax) wants you do it?
The ProSeries/TurboTax way (which is contrary to the IRS Instructions): On the Asset Entry Worksheet, go down to the disposition section. I think you should be able to fill out the information about the sale there. Then in that same disposition section, you can 'link' it to the "Home Sale Worksheet". Then you can fill out the rest of the Home Sale Worksheet to qualify for the exclusion.
It should show up on 8949/Schedule D and the Unrecaptured Section 1250 gain should show up on line 19-ish of Schedule D.
The IRS Instructions tell you to report the sale and exclusion on Form 4797. ProSeries is not set up to do it there so you would need to manually fill it out (see the top of the 4797 and/or the "Enterable 4797"). But then you would also need to manually figure out and enter if the sale affects any other business aspects, such as Home Office limits, QBI, etc.
