If you had changed the rental to personal use, it could now be a second home this year, but you would still have had to report that transaction the year you turned the rental into personal use. It would have been like "selling" the rental to yourself, so you would not get any benefit by doing that. You would have still been charged with "Depreciation Recapture".
Some closing costs, when purchased, are added to the basis, (which would have been included with the depreciation basis of the rental) and selling closing costs are subtracted from the selling proceeds you received from the sale.
Here is some more information:
Additional Answer
"You can reduce your selling price by the amount of the closing costs paid. Lower selling price produces a lower profit, which in turn lowers your tax bill. .
The following is a list of closing costs that can be deducted from your sales price assuming you paid them.
Attorney fees in connection with obtaining property
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- Commissions
- State stamp taxes and transfer taxes
- Tax service fees
- Title policy fees or title insurance
- Miscellaneous abstracts of title, surveys, recording of deed"
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