not quite how it works. first depreciation up to the amount of gain is recaptured.
using the above example
the $150 gain is reduced by the $30 depreciation leaving $120
40% - 6/15 of that gain or $48 is allocated to nonqualified use so it is not eligible for the exclusion and is taxed at capital gain rates
the remaining $72 is excludable.
this is consistent with worksheet 3 in pub 523.
however, your numbers will be different because the depreciation is a guess.
for example, if depreciation was $60 then the remaining gain is $90. 40% or $36 not excludable
you use the home sale worksheet and will need to enter among other things - in the basis worksheet and elsewhere the depreciation taken for regular tax and AMT tax purposes (should be the same). also needed
is the days of nonqualified use.
