@FSORetiree , what I get from your post is that
(a) you bought a property in 1997 and used it as your main home for the period 1997 thru 1999 as your main home
(b) you had various periods of using the property as income property
(c) from 7/3/2014 through 4/29/2020 the property was your main residence
(d) you sold the property on 4/29/2020
Now the question is can you exclude the gain on the property since it was your main home.
To avail of the this special exclusion of gain from the main residence :
1. with a look back period of five years from the sale date i.e. from 4/29/2020 till 4/29 2015
--- (a) at least one spouse has owned the property for two years
---(b) both spouses have used this property as main residence for a total of 730 days
2. in your particular case you meet both the requirements because you have owned the property since 1997 and because you have both used the property as main home since 7/3/2014 through 4/29/2020.
The gain is determined ( and TurboTax will do all the work for you on this ) as Sales Proceeds ( which is Sales Price LESS sales expenses such as realestate commission, transfer taxes, title insurance etc. etc.) LESS adjusted Basis ( which is acquisition cost plus cost any improvements etc. LESS accumulated allowable depreciation ). This gain is now broken into two parts --- (a) the accumulated depreciation that is treated as "recapture amount" and taxed as ordinary income, and (b) Capital gain that is eligible for exclusion up to $500,000 for a couple. Any gain that is not excluded or given ordinary treatment is now taxed at Capital gain rates .
Since you already meet the " usage requirements" by having used the property as your main residence during 7/3/2014 through disposition date, the need for applying "qualified usage rules" do not arise.
Does this answer your query?
3.
