Gain from 1099-A when FMV used for depreciation

[David]

Client received a 1099-A for rental property that is going back to the lender. When we set up the depreciation basis we used a much lower FMV amount than the amount he paid for the property - he originally used it as his principal residence.

When I calculate the gain, the basis, less depreciation, should be adjusted to represent his cost less depreciation. The much lower FMV was only used for depreciation puposes. surely, the gain from abandonment shouldn't be the principal amount outstanding less the adjusted basis based on using the much lower FMV for depreciation purposes.

How, in the ATX program, is this handled? The only way I see to adjust this is in the disposition tab line 13, basis adjustment.

Is this the correct way to handle this or is there a better way in the ATX program?

Thanks.